Khadi and Village Industries Commission Act, 1956
In this Act, unless the context otherwise requires,--
(a) "the Board" means the Board constituted under 1[Section 10];
(b) "chairman" means the chairman of the Commission;
(c) "Commission" means the Khadi and Village Industries Commission established under Section 4;
2[(cc) "fixed capital investment" includes investment in plant and machinery and land and building of an industry;]
(d) "khadi" means any cloth woven on handlooms in India from cotton, silk or woollen yarn handspun in India or from a mixture of any two or all of such yarns;
(e) "member" means a member of the Commission and includes the chairman 3[x x x x].
(f) "prescribed" means prescribed by rules made under this Act;
4[(ff) "rural area" means the area comprised in any village, and includes the area comprised in any town, the population of which does not exceed ten thousand or such other figure as the Central Government
1[x x x x]
(1) With effect from such date as the Central Government may, by notification in the Official Gazette, fix in this behalf, there shall be established a Commission to be called the Khadi and Village Industries Commission which shall be a body corporate having perpetual succession and a common seal, with power to acquire, hold and dispose of property and to contract, and may by the said name sue and be sued.
1[(2) The Commission shall consist of the following members appointed by the Central Government, namely: --
(a) six non-official members having specialised knowledge and experience of khadi and village industries and representing such six geographical zones of the country, as may be prescribed;
(b) two non-official members having expert knowledge and experience in one or more of the following disciplines, namely:--
Economics, Planning, Rural Development, Science and Technology or Technical Education and Training;
(c) one Financial Advi
(1) The Chief Executive Officer appointed under clause (d) of sub-section (2) of Section 4 shall exercise powers of general superintendence over the affairs of the Commission and its day-today management under the direction and control of the chairman.
(2) The Chief Executive Officer shall be responsible for the furnishing of all returns, reports and statements required to be furnished to the Central Government under Section 24.
(3) It shall be the duty of the Chief Executive Officer to place before the Commission for its consideration and decision any matter of financial import if the Financial Adviser suggests to him in writing that such matter be placed before the Commission.]
The Financial Adviser appointed under clause (c) of sub-section (2) of Section 4 shall be in charge of all financial matters of the Commission including its budget, accounts and audit and it shall be the duty of the Financial Adviser to bring to the notice of the Commission through the Chief Executive Officer any matter of financial import, which, in his opinion, requires consideration and decision by the Commission.]
A person shall be disqualified for being appointed as, and for being, a member of the Commission --
(a) if he is, or is found to be a lunatic or a person of unsound mind; or
(b) if he has been adjudged insolvent; or
(c) if he has been convicted of an offence involving moral turpitude; or
(d) if he has any financial interest in any subsisting contract made with or in any work being done by the Commission, except as a shareholder (other than a Director), in a company as defined in Section 3 of the Companies Act, 1956 (1 of 1956):
Provided that where he is a shareholder, he shall disclose to the Central Government, the nature and extent of shares held by him in such a company; or
(e) if he has any financial interest in any business undertaking dealing with or any other village industry specified or deemed to be specified in the Schedule to the Act.]
The Central Government may, by notification in the Official Gazette, remove from office any member of the Commission who--
(a) is or becomes subject to any of the disqualifications mentioned in Section 6; or
(b) in the opinion of the Central Government has failed or is unable to carry out his duties; or
(c) absents himself from three consecutive meetings of the Commission without the leave of the Commission:
Provided that before issuing any such notification, the Central Government shall give an opportunity to the member concerned to show cause against such removal.]
Any member may resign his office by giving notice in writing to the Central Government and, on such resignation being notified in the Official Gazette by that Government, shall be deemed to have vacated his office.
No act or proceeding of the Commission shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereof.
(1) The Commission may associate with itself in such manner and for such purposes as may be determined by regulations made under this Act any persons whose assistance or advice it may desire in complying with any of the provisions of this Act.
(2) A person associated with it by the Commission under sub-section (1) for any purpose shall have the right to take part in the discussions of the Commission relevant to that purpose, but shall not have the right to vote, and shall not be a member for any other purpose.
(3) The Central Government may, by notification in the Official Gazette, depute one or more officers of the Government of attend any meetings of the Commission and to take part in the discussions of the Commission, but such officer or officers shall not have the right to vote.
For the purpose of assisting the Commission in the discharge of its functions under this Act, the Central Government may, by notification in the Official Gazette, constitute a Board to be called the Khadi and Village Industries Board consisting of a chairman and such number of other members as the Central Government may think fit, chosen from among persons who, in the opinion of the Central Government, are qualified as having had experience, and shown capacity, in matters relating to the development of khadi and village industries.
The Commission shall ordinarily consult the Board with respect to the discharge of its functions under this Act.
(1) The Commission shall meet at such times and places and shall, subject to the provisions of sub-sections (2) and (3), observe such rules of procedure in regard to transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the Commission under this Act:
Provided that the Commission shall meet at least once in every month.
1[(2) The chairman or, in his absence, any member (other than an ex-officio member) chosen by the members present from among themselves, shall preside at a meeting of the Commission.]
(3) All questions at a meeting of the Commission shall be decided by a majority of the votes of the members present and voting and in the case of an equality of votes, the chairman or, in his absence the person presiding, shall have a second or casting vote.
(1) Every member of the Commission, other than an ex-officio member, shall hold office for a term of five years:
Provided that the chairman shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office.
(2) The terms and conditions of service of the Chairman, Chief Executive Officers, Financial Adviser and other members shall be such as may be prescribed.]
1[x x x x]
2[x x x x] Subject to such rules as may be made by the Central Government in this behalf, the Commission may appoint such other officers and servants as it considers necessary for the efficient performance of its functions:
3[x x x x]
(1) Subject to the provisions of this Act, the functions of the Commission shall generally be to plan, promote, organise and assist in the establishment and development of khadi and village industries in the rural area in coordination with other agencies engaged in rural development wherever necessary.
(2) In particular, and without prejudice to the generality of the foregoing power, the Commission may take such other steps as it may think fit,--
(a) to plan and organise training of persons employed or desirous of seeking employment in khadi and village industries;
(b) to build up reserves of raw materials and implements and supply them to persons engaged or likely to be engaged in production of handspun yarn or khadi or village industries at such rates as the Commission may decide;
(c) to encourage and assist in the creation of common service facilities for the processing of raw materials or semi-finished goods and for otherwise facilitating production a
In the discharge of its functions under this Act, the Commission shall be bound by such directions as the Central Government may give to it.
The Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the Commission in each financial year such sums as may be considered necessary for the performance of the functions of the Commission under this Act.
The Commission may, for the purpose of development of khadi 2[the development of village industries or the development of khadi and village industries], receive gifts, grants, donations or benefactions from the Government or any other person.]
1[(1) The Commission shall have three separate funds to be called the khadi fund, the village industries fund and the general and miscellaneous fund.
(1-A) There shall be credited,--
(a) to the khadi fund, all sums received by the Commission for the purposes relating to khadi;
(b) to the village industries fund, all sums received by the Commission for the purposes relating to village industries and products of handicrafts;
(c) to the general and miscellaneous fund, all other sums received by the Commission:
Provided that if the amount available in any of the said funds is in excess of the requirements of that fund and the amount available in any other of the said funds is insufficient to meet the requirements of that fund, the Commission may, with the previous approval of the Central Government, transfer from the first mentioned fund the excess amount or such part thereof as may be necessary to the other fund.
Explanation
Subject to the provisions of Section 20 the Commission shall have power to spend such sums as it thinks fit on purposes authorized by this Act:
Provided that nothing in this section shall be deemed to prevent the Commission from spending, with the previous approval of the Central Government such moneys, as it thinks fit on any such purpose outside the territories to which this Act extends.
(1) There shall be constituted from among the members of the Commission in the prescribed manner, a Standing Finance Committee in respect of each of the 2[three] funds referred to in Section 18.
(2) The Standing Finance Committee shall exercise such of the powers of the Commission under Section 19 as are delegated to it by the Commission.]
(1) Any sum payable to the Commission under any agreement, express or implied, or otherwise howsoever, may be recovered in the same manner as an arrear of land-revenue.
(2) If any question arises whether a sum is payable to the Commission within the meaning of sub-section (1), it shall be referred to a Tribunal constituted by the Central Government for the purpose which shall, after making such inquiry as it may deem fit and after giving to the person by whom the sum is alleged to be payable an opportunity of being heard, decide the question; and the decision of the Tribunal shall be final and shall not be called in question by any court or other authority.
(3) The Tribunal shall consist of one person who is not connected with the Commission or with the person by whom the sum is alleged to be payable.
(4) The expenses of the Tribunal shall be borne by the Commission.]
(1) The Commission shall, by such date in each year as may be prescribed, prepare and submit to the Central Government for approval 1[three] separate budgets in the prescribed form for the next financial year, to be called the khadi budget 2[the village industries budget and the general and miscellaneous budget], showing the estimated receipts and expenditure in respect of khadi 3[village industries and products of handicrafts and khadi and village industries] respectively during that financial year.
(2) Subject to the provisions of sub-sections (3) and (4), no sum shall be expended by or on behalf of the Commission unless the expenditure is covered by a specific provision in the budget approved by the Central Government.
4[(3) The Commission may within the respective limits of the khadi budget, the village industries budget and the general and miscellaneous budget, sanction and reappropriation from one head of expenditure to
Subject to such rules as may be made in this behalf, the Commission shall have power to borrow on the security of the khadi fund or the village industries fund or any other asset for any purposes for which such funds may be applied.
All liabilities incurred by, all contracts entered into with, and all matters and things engaged to be done by, or for, the Central Government in connection with the development of khadi or village industries at any time after the 14th day of January, 1953, and before the commencement of this Act, shall after such commencement, be deemed to have been incurred by, entered into with, or engaged to be done by, or for, the Commission.
(1) The Commission shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the profit and loss account and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the Commission shall be audited by the Comptroller and Auditor-General of India at such intervals as may be prescribed by him.
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Commission shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor General has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and to inspect any of the offices of the Commission.
(4) The accounts
(1) The Commission shall furnish to the Central Government, at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development of khadi and village industries, as the Central Government may, from time to time, require.
(2) Without prejudice to the provisions of sub-section (1), the Commission shall, as soon as possible after the end of each financial year, submit to the Central Government a report, in such form and before such date as may be prescribed, giving a true and full account of its activities, policy and progarmme during the previous financial year.
(3) A copy of the report received under sub-section (2) shall be laid before each House or Parliament.
Notwithstanding anything contained in the Income-tax Act, 1961 (43 of 1961), the Commission shall not be liable to pay any income-tax on its income, profits or gains.]
(1) The Central Government may, by notification in the Official Gazette, direct that the Commission shall be dissolved from such date as may be specified in the notification and thereupon the Commission shall be deemed to be dissolved accordingly.
(2) On and from the said date--
(a) all properties and funds which, immediately before the said date, were in the possession of the Commission for the purposes of this Act shall vest in the Central Government; and
(b) all members shall vacate their office as members of the Commission.
(1) The Central Government may, by notification in the Official Gazette, make rules to give effect to the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters, namely:--
1[(a) the manner of filling casual vacancies among the members of the Commission and the terms and conditions of service of the chairman, the Chief Executive Officer, the Financial Adviser and other members of the Commission including the salary and allowances to be paid to them and the travelling and daily allowances to be drawn by them when they are on tour;]
(b) 2[x x x x] the procedure to be followed in removing a member who is or becomes subject to any disqualification;
(c) the term of office and other conditions of service of, the procedure to be followed in the discharge of functions by, and the manner of filling casual vacancies among, members o
(1) The Commission may, with the previous sanction of the Central Government, by notification in the Official Gazette, make regulations, not inconsistent with this Act and the rules made thereunder, for enabling it to discharge its functions under this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:--
(a) the terms and conditions of appointment and service and the scales of pay of officers and servants of the Commission, other than 1[the Chief Executive Officer] and the Financial Adviser to the Commission, including payment of travelling and daily allowances in respect of journeys undertaken by such officers and servants for the purpose of this Act;
(b) the time and place of meetings of the Commission, the procedure to be followed in regard to transaction of business at such meetings and the quorum necessary for the transaction of such
Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.]
SCHEDULE |
[See 1[Section 2(h)]] |
1. Bee keeping. 2. Cottage match industry. 3. Cottage pottery industry. 4. Cottage soap industry. 5. Flaying, curing and tanning of hides and skins and ancillary industries connected with the same and cottage leather industry. 6. Ghani oil industry. 7. Hand-made paper. 8. Manufacture of cane-gur and khandsari. 9. Palm-gur making and other palm-products industry. 10. Processing 2[, packaging and marketing of cereals, pulses, spices, condiments, masalas etc.] 3[(i) Manufacture of shellac; (ii) Collection of forest plants and fruits for medicinal purposes; (iii) Fruit-processing and f |
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