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Section 21: Investment of funds by National Authority
The National Authority may invest its funds, including any reserve fund, in the securities of the Central Government and in scheduled banks in such manner as may be prescribed: Provided that the grants received from the Central Government shall not be invested and shall be utilised for the purposes and in the manner attached to it.
Source: official text of The Compensatory Afforestation Fund Act, 2016 as published on India Code (PDF). All sections of the Compensatory Afforestation Fund Act, 2016.