State Act

Tamil Nadu Panchayats Act 1994

181-C. Raising of loan by Panchayat.- Every Panchayat shall be competent to raise loan in full or in part from any Financial Institution or agency or bank for any of the following purposes, subject to the conditions imposed by the Government in this behalf, namely:- (a) to carry out any of the works connected with the improvement and development of infrastructure in Panchayat areas; (b) to carry out relief works at the time of natural calamities; (c) to undertake any measure in connection with, or ancillary to the above purposes; and (d) to carry out any of its other statutory functions.