(1) There shall be formed a fund to be known as the “Lahore Development Authority Fund” which shall vest in the Authority and shall be utilized by the Authority in connection with its functions under this Act including the payment of salaries and other remunerations to the members, officers, servants, experts and consultants of the Authority.

(2)  To the credit of the Lahore Development Authority Fund shall be credited–

(a)  grants and loans made by the Government;

(b)  all moneys received from Federal Government or any inter-national agency by way of grants, loans, advances or otherwise;

(c)  all fees, rates and charges received by the Authority under the Act;

(d) all moneys received by the Authority from the disposal of lands, buildings and other properties, movable and immovable;

(e)  proceeds from the self-financing schemes of urban development and environmental sanitation; and

(f)  all other sums receivable by the Authority.

(3) The aforesaid sums in respect of services related to water supply, sewerage and drainage shall be credited separately to the head “water supply and sanitation” and all other sums to the head “urban development”. The sums credited to the head “water supply and sanitation” shall be exclusively utilized for the purposes of water supply, sewerage and drainage].

(4)  In case of deficit revenue of the Authority, the Government shall provide from its own revenues or from any other source, such sum as may be necessary for the efficient performance of the functions of the Authority under this Act.

(5)  The Authority may keep in current account of any scheduled bank such sum as may be prescribed and any amount in excess of the said amount shall be invested in Government securities, Government sponsored saving schemes or in such manner as may be determined by the Authority.

      Explanation– For the purpose of this sub-section, Government includes Federal Government.


(1) The Authority may raise adequate funds to meet the cost of planning, expansion, execution, development, redevelopment, maintenance, zoning, classification, reclassification, augmentation, supervision, regulation and conversion of any property or any present and future scheme or any part of the scheme, by imposing rates, fees, surcharge, other charges and fines in the prescribed manner.

(1a) The Authority may, in the prescribed manner, impose fee on change of land use owing to classification and reclassification.]

(2)  The rates, fees and other charges for water supply, sewerage and drainage schemes shall be such as to provide sufficient revenues–

(i)   to cover the operating expenses including taxes, if any, and interest to provide adequate maintenance and depreciation;

(ii)  to meet repayments on long term indebtedness to the extent that such repayments exceed the provision of depreciation;

(iii)  to finance the normal year to year extension of any of such schemes and to provide a reasonable portion of the cost of future major expansion of such schemes.


(1) The Authority shall have the exclusive right to use ground water resources within the area.

(2) No person shall, without the permission of the Authority, install a tube-well at such places within the areas, as may be notified from time to time in the official Gazette by the Authority.

(3) The Authority may, in the prescribed manner, levy rate on any person who has installed or intends to install tubewell within the area.

(4)  Any person violating the provisions of subsection (2) shall be liable to punishment under this Act along with closure or sealing of the said tube well by the Authority.


The Authority shall maintain proper accounts and other relevant records and prepare annual statement of accounts in such form as may be prescribed.


The Director General shall prepare, in such manner and at such time as may be prescribed, a budget in respect of the financial year next ensuing showing the estimated receipts and expenditure of the Authority and each of its Agencies and shall submit the same to the Authority for approval.

  1. AUDIT

The accounts of the Authority and each of its Agencies shall be audited annually by duly qualified auditors appointed by the Authority and each Agency respectively. This will be in addition to the pre-audit by the Government Auditors].