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The Bihar Agricultural and Rural Area Development Agency Act, 1978

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Bihar  Agricultural and Rural Area Development Agency Act, 1978 
1. Short title,  extent and commencement. 
 
2. Definitions. 
 
3. Constitution of the Agency. 
 
4. The Board. 
 
5. Executive Committee. 
 
6. Constitution of Committee. 
 
7. Chairman and Managing Director. 
 
8. Employment of other Officers and Staff. 
 
9. Functions of the Agency. 
 
10. Powers of the Agency. 
 
11. Power to prevent work adversely affecting Plan. 
 
12. Provision of the Plan. 
 
13. Stage and manner of preparation of the Plan. 
 
14. Special schemes for construction of irrigation channels, drainage channels and land levelling, land shaping and development and construction of any  other infrastructures. 
15. Publication of draft special scheme and hearing of objections. 
 
16. Hearing of objections. 
 
17. Sanction of draft special scheme. 
 
18. Subsequent changes. 
 
19. Implementation of the programme. 
 
20. Directions to execute work concerning special schemes. 
 
21. Preparation of statements. 
 
22. Obligation of persons to maintain and repair works. 
 
23. Penalty. 
 
24. Fund of the Agency. 
 
25. Power of Agency  to spend. 
 
26. Recovery of the amounts due to the Agency. 
 
27. Budget. 
 
28. Annual Reports. 
 
29. Accounts and Audits. 
 
30. Disposal of surplus. 
 
31. Filling up  vacancies. 
 
32. Action  taken not to be illegal if composition of Agency  or Executive Committee incomplete. 
33. Direction by the State Government. 
34. Compulsory Acquisition of land for the Agency. 
 
35. Members, Officers and Servants of the Agency  to be public servants. 
 
36. Power of Entry. 
 
37. Protection for action taken under this  Act. 
 
38. Power to make rule. 
 
39. Power to make regulations. 
 
40. Relationship of the agency with  Panchayat Institution. 
 
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41. Provisions of this  Act to prevail. 
 
42. Winding up. 
 
43. Repeal and Saving. 
 
   
Bihar Agricultural and Rural Area Development Agency Act, 1978 
 
Bihar Act 3 of 1979 
 
 
1. Short title, extent and commencement.  - (1) This Act may be called the Bihar Agricultural and 
 
Rural Area Development Agency Act, 1978.  
(2) It extends to the whole of the State of Bihar.  
(3)  It  shall  come  into  force  on  such  date  and  in  such  areas,  as  the  State  Government  may,  by 
notification in the Official Gazette, appoint and it may appoint different dates or different areas and for 
different provisions. 
2. Definitions. - In this Act, unless there is anything repugnant in the subject or context,- 
 
(i) "Command areas of Irrigation Project" means the area notified as such by the State Government. 
(ii) "Agency" means the Agency notified under section 3. 
(iii) "Board" means the Board constituted under section 4.  
(iv) "Adhyaksha  of Zila  Parishad"  means  the  Adhyaksha  as defined  in Chapter  I of the  Bihar 
Panchayat Samitis and Zila Parishads Act, 1961* (Bihar Act VI of 1962). 
(v) "Bank" means- 
(a) a banking company as defined in the Banking Regulation Act, 1949;  
(b) the State Bank of India constituted under the State Bank of India Act, 1956; 
 
(c) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959; and  
(d) a corresponding  new bank constituted  under the Banking Companies  (Acquisition  and 
 
Transfer of Undertakings) Act, 1970.  
(vi)  "Financial  Institutions"  means  financial  institution  engaged  in  financing  agricultural,  animal 
husbandry, agro-industries and allied activities. 
(vii) "Financial Year" means the year commencing on the 1st day of April. 
(viii) "Prescribed" means prescribed by rules made under section 31. 
(ix) "Rules" means rules made under section 38 by the State Government.  
(x) "Regulations" means regulations made by the Board under section 39. 
 
3. Constitution of the Agency. - (1) The State Government may at any time after the commencement 
of this Act constitute an Agency or Agencies for the integrated rural and agricultural development of the 
command  area of any irrigation  project  and/or  such other  area as the State  Government  may, by 
notification in the Official Gazette, specify : 
Provided  that  the  State  Government  may,  by  notification  in  the  Official  Gazette  include  at  any 
subsequent stage, any area within the Agency so declared; or exclude any area from any such Agency 
or transfer any area from one Agency to another. 
 
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(2) The name and composition of any such Agency constituted under sub-section (1) shall be specified 
in the notification. 
(3) The Agency  shall be a body corporate  having  perpetual  succession  and a common  seal, with 
powers, subject to the provision of this Act to acquire, hold, dispose of property and to contract, and it 
may sue or be sued by its own name and title. 
(4) The headquarters  of the Agency  shall be situated  at such place in the area of Agency  as the 
 
Agency may by notification in the Official Gazette, specify.  
4. The Board. - (1) For every Agency set up under section 3 of this Act, the State Government shall by 
notification published in the Official Gazette, constitute a Board consisting of the following:- 
(a) Chairman; 
 
(b) Adhyaksha of each Zila Parishad falling within the area of operation of the Agency;  
(c) A representative of the Chotanagpur and Santhal Parganas Autonomous Development Authority 
where the Agency lies in its area of operation; 
(d) Two farmers from within the area of operation of the Agency and Four members of Legislature- 
three from Legislative Assembly and one from Legislative Council; 
 
(e) The Chief Engineer, Irrigation or the Chief Engineer-in-charge of the project; 
 
(f) Not more than three officers of the State Government excluding those officers nominated under 
other sub-sections of this section; 
(g) One representative of the State Water Resources Development Board; 
(h) Chairman, *Bihar State Electricity Board or his nominee or; 
(i) One representative of the Co-operative Institutions: 
 
(j) Two representatives  of the Commercial Banks and other financial institutions operating in the area: 
 
(k) A representative of the †Rajendra Agricultural University; 
 
(l) The Financial Adviser and Chief Accounts officer of Agency. 
(m) Managing Director of the Agency: 
Provided that the total number of members of the Board shall not at any time exceed twenty five.  
(2) The Chairman and the Managing Director of the Board shall be appointed by the State Government 
who shall hold the post at the pleasure of the Government and the State Government shall prescribe 
the terms and conditions. 
(3) Members other than ex-officio members of the Board shall hold office at the pleasure of the State 
 
Government.  
(4) The executive authority of the Agency shall vest in the Board.  
(5) The Board shall meet at least once in every three months and the meetings shall be conducted in 
the manner prescribed by the rules. 
*In view of applicability of this Act to Jharkhand [u/s 84, Bihar Reorganisation Act, 2000] this may be read as "Jharkhand". 
 
†Vide ibid this may be read as "Birsa". 
 
5. Executive Committee. - (1) The Board shall constitute an Executive Committee consisting of two 
representatives  each from amongst  those specified  in clauses (b), (d) and (f) of sub-section  (1) of 
 
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section 4 and one representative each from amongst those specified in clauses (c), (e) and (f) of the 
same sub-section. The Chairman of the Board shall be the Chairman of the Executive Committee. 
(2) In the absence of Chairman, members present shall elect a member from among themselves who 
shall preside over that meeting of the Board or Executive Committee. 
(3) The terms of office of members of the Executive Committee other than ex-officio members shall be 
the same as that of the members of the Board. 
(4)  The  Executive  Committee  shall  discharge  such  duties  and  exercise  such  powers  as  may  be 
delegated to it by the Board, and it may sub-delegate all or any powers vested in it to the Managing Director 
or other officers as it deems fit; 
Provided that copies of all orders sub-delegating powers shall be placed before the Board soon after 
the orders are passed and the Board may approve, disapprove or modify any such order and thereafter 
such order shall remain in force in its original or modified form or cease to be in force, as the case may be. 
6. Constitution of Committee. - The Board or Executive Committee may constitute standing or ad hoc 
committee consisting wholly of members of such Board or wholly other persons, or partly of members 
of such  Board  and  partly  of other  persons,  and  for  any  purpose  or purposes  consistent  with  the 
provisions of the Act as it may think fit. 
7. Chairman and Managing Director. - (1) Powers, functions and duties of Chairman. - 
The Chairman shall have following powers, functions and duties:- 
(a) to preside over the Board and Executive Committee; 
 
(b) general supervision and control of all works of the Agency; 
(c) to keep general control over all the officials of the Agency; 
(d) to exercise powers, functions and duties under the provisions of the Act, Rules and Regulations.  
(2) The Managing Director shall be full time officer and the Chief Executive officer of the Agency who 
shall function under the general supervision and control of the Chairman. He shall exercise such power 
as may be prescribed by the rules or delegated to him by the Board or Executive Committee and he 
may sub-delegate all or any powers vested in him to such officers, as he deems fit: 
Provided  that  copies  of  all  orders  sub-delegating  powers  shall  be  placed  before  the  Executive 
 
Committee soon after the orders are passed and the Executive Committee may approve, disapprove or 
modify any such order and thereafter such order shall remain in force in its original or modified form or 
cease to be in force as the case may be. 
8. Employment of other Officers and Staff. - The Board may appoint such officers and staff on such 
emoluments and on such conditions of service as may be laid down in the regulations. 
9. Functions of the Agency. - The functions of the Agency shall be- 
 
(i) the formulation of a plan or programme and schemes for the integrated rural and agricultural 
development of the territory within its area of operation; 
(ii) the implementation  of such plan or programme  and schemes  as may be necessary  for the 
development of the area; 
 
(iii) the promotion and operation of schemes for irrigation, drainage, flood control and water-supply, 
rural electrification, land leveling and land development and development of agriculture, animal- 
husbandry, fisheries and forestry within its area of operation: 
 
 
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Provided that in respect of major irrigation projects, the State Government may entrust the maintenance 
and operation of the head works and main canal to the State Irrigation River Valley Project Department; 
(iv) undertaking such other activity from time to time as may be deemed necessary, conducive, 
incidental or ancillary for the attainment of the aims and objects of this.  
10. Powers of the Agency. - The Agency shall have power to- 
 
(a) take measures for promoting the utilization of available irrigation facilities; 
(b) take measure for facilitating or promoting rural electrification schemes; 
(c) take measures for land levelling, and land development; 
 
(d) take measure for soil conservation and water management; 
 
(e) organise agricultural extension service and field research experimental stations and farms and 
farmers service societies, etc; 
 
(f) training farmers, artisans etc.;  
(g)  take  measure,  including  special  measures,  for  promoting  development  of  small  farmers, 
marginal farmers, agricultural labourers and village artisans; 
(h) take measures for facilitating or promoting agro service centers; 
 
(i) take measures for the establishment of markets, constructions of stores and godowns. 
 
(j) acquire and hold such moveable and immoveable  properties as it may deem necessary and 
subject to such limitations as may be prescribed in this behalf, lease sell or otherwise transfer 
any such property; 
(k) advance loans for the purposes of this Act and recover the same with interest thereon as may 
be fixed by the Board; 
 
(l) levy such rates, charges, fees and dues as are considered necessary to recover the cost of providing 
various services as may be provided by rules; 
(m) borrow money in the open market by issuing bond or debentures or otherwise for carrying out 
purposes of this Act subject to such conditions as may be prescribed in this behalf; 
 
(n) construct or cause to be constructed such dams, barrages, reservoirs, irrigation and drainage 
channels and such other structures as may be required; 
(o) prevent pollution of any water under its control and take all measures to prevent discharges into 
such water of effluents which are harmful to water supply, irrigation, public health or fish life; 
 
(p) stock its reservoirs or watercourses with fish or regulate or prohibit taking out fish from water 
under its control; 
(q) undertake resettlement of the population displaced by any dams, reservoirs, bridges, roads or 
factories constructed by it; 
 
(r) aid in the establishment of co-operative societies including farmers services societies and such 
other organisations for better utilization of facilities made available by the Agency; 
 
(s) construct or cause to be constructed roads or other facilities of communication in the area of its operation; 
(t) turn, divert, or discontinue public user or permanently close any road or any part thereof, other 
than National Highway; 
 
(u) set up such agro-industries as may be considered necessary for promoting integrated rural and 
agricultural development of the area; 
 
 
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(v) promote and take marketing and processing activities; 
 
(w) undertake such other activity as may be deemed necessary conducive, incidental or ancillary 
for the attainment of the aims and objects of this Act. 
 
11. Power to prevent  work adversely  affecting  Plan. - The Agency  may by notice, prevent  any 
person from doing such work as it may consider adversely affect the execution of its plan. 
12. Provision of the Plan. - The plan for integrated rural and agricultural development may provide for 
all or any of the following matters, namely:- 
(i) development and utilization of irrigation facilities from various sources including construction of 
field channels; 
(ii) provision of drainage facilities including field drainage channels; 
(iii) rural electrification; 
(iv) land levelling and land development; 
 
(v) soil conservation and water management;  
(vi) preparation of cropping pattern and farm plans;  
(vii) establishment of field research and experimental stations including soil testing facilities; 
(viii) training of farmers, artisans, etc.; 
(ix) measures, including special measures, if any, for promotion and development of small farmers, 
marginal farmers, agricultural labourers and village artisans; 
(x) provision of credit supply for farm activities and farm development; 
(xi) construction of village roads and arrangements for transportation; 
(xii) promotion of setting up of agro-service centres, farmers service societies or other agencies in 
supply of material  inputs such as fertilisers,  pesticides,  farm machinery,  technical  know-how, 
animal husbandry and veterinary services; 
(xiii) establishment of markets, construction of stores and godown and agriculture processing units; 
(xiv) promotion or setting up of rural growth centres; 
(xv) any other matter  not inconsistent  with the provisions  of this Act considered  necessary  for 
promoting full development of the area. 
 
The plan may be prepared at a time or in parts and may be revised from time to time. The Agency may 
prepare  special  schemes  for  construction  of  irrigation  channels,  drainage,  land  levelling  and  land 
shaping and development of construction of any other infrastructure. 
13. Stage and manner of preparation of the Plan. - The plan shall be prepared in such manner as 
may be laid down in the regulations: 
Provided  that the procedure  laid down in sections  14 to 20 shall be followed  for special  schemes 
affecting the rights and interests of any individual 
14.  Special  schemes  for  construction  of  irrigation  channels,  drainage  channels  and  land 
levelling, land shaping and development and construction of any other infrastructures. - (1) The 
Agency  may  get  special  schemes  prepared  for  construction  of  irrigation  channels,  drainage,  land 
levelling, land shaping and development of construction of any basic structures prepared for blocks of 
land within its area. 
 
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(2) The special scheme shall contain- 
(a) the objects of the schemes; 
(b) the boundaries and approximate area of the land to be included in the schemes; 
(c) the persons including the Government who will be affected by the scheme; 
(d) the kind of work to be carried out under the scheme and the cost thereof; 
 
(e) the agency or agencies through which the work shall be carried out; 
(f) the total amount to be recovered from owners; 
(g) the general rate at which the amount is to be recovered from owners; 
 
(h) the period within which the amount is to be recovered;  
(i) the works which shall be maintained and repaired individually or jointly and the name of every 
such person liable to maintain and repair the works; 
(j) and such other particulars as may be prescribed. 
 
(3)  The  draft  schemes  shall  be  placed  before  the  Board  which  may  approve  it  with  or  without modifications. 
15. Publication of draft special scheme and hearing of objections. - (1) Copies of draft scheme 
prepared under section 14 shall be published by an officer authorized by the Agency in the office of the 
Agency, and in the offices of Gram Panchayats, Panchayat Samitis, Blocks and Sub-divisional Offices 
within whose jurisdiction the scheme is to be executed and the lands proposed to be covered by it are situated. 
(2)  A general  notice  in the  prescribed  form  shall  be published  in the  official  gazette  and  in such 
newspapers, if any, circulating in the locality as the officer concerned may direct- 
(a) intimating that the draft scheme has been prepared, that copies thereof have been kept and 
may be inspected by the public free of charge at the places aforesaid and the copies may be obtained 
on payment of the cost thereof, from the office of the concerned officer, and also from any other 
office specified in the notice; and 
(b) requiring any person affected by the draft scheme who wishes to object to it or to any part 
thereof to submit his objections in writing to the officer concerned or to appear before him or to 
appear through his agent with his objections within thirty days of the publication of the notice. 
 
(3) A special  notice  shall be sent to the Panchayat  Samiti  concerned  so that it may submit  such 
suggestions or objections as it may consider necessary within thirty days of the notice. 
(4) The general notice shall also be published by beat of drums in the village or villages to which the 
draft schemes relate. 
16. Hearing of objections.  - The officer authorized  by the Board shall enquire into the objections 
received or recorded by him and submit them to the Managing Director together with his report thereon, 
if any, or modification of the draft special scheme. 
17. Sanction of draft special scheme. - (1) After considering the objection and the report and any 
further report which the Board may call for, the Board may approve the draft scheme with or without 
modifications  or may reject it and direct that in lieu thereof a fresh draft scheme be prepared  and 
submitted for its approval. 
 
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(2) The State Government  may, for the purpose of carrying out the objects of the schemes,  make 
regulation requiring any person or persons or the public generally to take certain order or refrain from doing 
certain acts in respect of any matter supplementary and incidental to the scheme. 
18. Subsequent changes. - Notwithstanding anything contained in section 17- 
 
(i) the Managing Director or any other officer authorized by the Board may make such changes in 
the special plan as are at any stage necessitated by the changes that may occur in the land due 
to any unforeseen circumstances provided that no such change shall be made to the prejudice of 
any owner without giving him any opportunity of being heard: 
 
Provided further that such changes shall be placed before the Board at its next meeting for approval. 
 
(ii) The Managing Director, or the officer authorized by the Board, if satisfied that a clerical error 
exists in the special plan, correct the same, either on his own motion or on the application of an 
interested person: 
 
Provided that such changes shall be placed before the Board at its next meeting for approval.  
19. Implementation of the programme. - The Agency may set up any local offices for the preparation 
of the plan, a part of the plan special schemes or Individual schemes and for their implementations or 
get  them  implemented  through  a co-operative  society  or  a society  registered  under  the  Societies 
Registration  Act,  1860,  a  Department  of  Government,  the  Zila  Parishad,  Panchayat  Samity  or 
Panchayat, a limited company, firm or individual contractor or departmentally by its own staff; 
Provided that for the implementation of special schemes the procedure laid down in section 21 shall be 
followed before entrusting the work to any one other than the interested persons. 
20. Directions to execute work concerning special schemes. - (1) The Managing Director or any 
officer authorized by the Board may by notice, require any owner to carry out at his own cost any work 
which under the special scheme is to be carried out by the owner at his own cost, in the manner and 
within the period mentioned in the notice. 
(2) Where an owner indicates in writing that he is unable to carry out the work within the time aforesaid 
or if the work is not carried out to the satisfaction of the Agency by the date fixed in that behalf or within 
such further time as any be allowed, the Agency shall get the work carried out and subject to such 
conditions as may be prescribed in this behalf, cover the expenses incurred from the owner as arrears 
of land revenue. 
(3) Notwithstanding anything contained in sub-sections (1) and (2) where the State Government is of 
the view that it will be in the interest of general public to have any work carried out by the Agency 
departmentally, it may direct the Agency to carry out the work and the cost of such work subject to such 
provision as may be made in the rules shall be recovered from the owner or from the owners in such 
proportion as the Agency may fix after taking into consideration the benefits or likely benefits to the land 
of each owner from that work and other relevant matter. 
(4) If the costs are not paid by the owner within the prescribed time such owner shall also be liable to 
pay such interest therein as may be prescribed. 
21. Preparation of statements. - (1) The Agency shall, on completion of development work within any 
specified block or chak or Board, prepare a statement for such work giving the following particulars:- 
(i) the name of the beneficiary: 
(ii) the work done; 
 
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(iii) the cost thereof;  
(iv) the total amount to be recovered from the beneficiaries; 
 
(iv) the general rate at which such amount is to be recovered from the beneficiaries; 
(vi) the period within which the amount is to be recovered; 
(vii)  the  names  of  persons  or  agencies,  including  Government  who  shall  be  responsible  for 
maintaining and repairing the work whether individually or jointly; 
(viii) a map showing the work carried out in the village, and  
(ix) such other matters as may be prescribed. 
 
(2) When a statement is prepared under this section any rights and liabilities shown therein shall be entered 
in record to be prepared for the purpose and kept in such manner as may be prescribed in the office of the 
Agency, and the office of the Panchayat Samiti as a permanent record and shall be open to public 
inspection and copies whereof shall be provided on payment of prescribed fee. 
22. Obligation of persons to maintain and repair works. - (1) Every person or agency shown in the 
statement prepared under section 14 shall maintain or repair any work on his own land or any other 
land in respect of which he is shown is liable in the said statement to the satisfaction of the Agency. 
(2) If any person or agency fails to maintain or repair the work within the time fixed the agency shall get 
the work maintained or repaired by its own agency or by the panchayat samiti or through any other 
agency and costs thereof shall be recovered from the persons or agency liable to maintain or repair as 
public dues under the Public Demands Recovery Act, 1914. 
23. Penalty. - Any person who without power or authority damages or obstructs any work under a plan 
or contravenes  any of the provisions  of this Act, or any rule or orders  made thereunder  shall, on 
conviction, be liable to imprisonment for a term which may extend to one month or to a fine which may 
extend to five hundred rupees or to both and where the offence is a continuing one to further fine which 
shall not be less than rupees twenty-five for every day during which the offence continues after the dale 
of the first conviction. 
24. Fund of the Agency. - (1) The Agency shall have its own fund and all receipts of the Agency shall 
be carried thereto and all payments shall be made by the Agency therefrom. 
(2) The Agency  may accept  grants,  subventions,  donations  and gift from the Central  or the State 
Government or a local authority, or any individual or body, whether incorporated or not, for all or any of 
the purpose of this Act: 
Provided  always  that  the  Agency  shall  not  divert  any  grants  or  subventions  received  from  the 
Central/State Government or local Authorities for expenditure on purposes other than for which these 
grants or subventions were made 
(3) All money  belonging  to the  fund  may  be deposited  either  in a Personal  Ledger  Account  in a 
Government of Bihar Treasury or in a nationalized or Co-operative Bank or invested in such a manner 
as may be decided by the Agency. 
25. Power of Agency to spend. - The Agency shall have the power to spend such sums as may be 
necessary for performing the functions and discharging the duties imposed on it under this Act, subject 
to the budget provision and/or any other directions, issued by the State Government in this behalf. 
26. Recovery of the amounts due to the Agency. - The principal amount of loan and interest due 
from any person to whom the Agency has advanced loan for purposes of this Act and the amount due 
 
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from any person as his share of contribution for development work in any area under section 14 shall 
be recoverable as public demand under the Public Demand Recovery Act, 1914 (Bihar and Orissa Act 
IV of 1914). 
27. Budget.  -  The  Agency  shall  prepare,  in  such  form  and  as  such  time  each  year  as  may  be 
prescribed, a budget in respect of the ensuing financial year, and copies thereof shall be forwarded to 
the State Government for their consideration and approval. 
28. Annual Reports. - The Agency shall prepare, in such form and at such time each year as may be 
prescribed, an annual report giving a true and full account of its activities during the previous financial 
year, and a copy thereof shall be sent to the State Government and the State Government shall cause 
to be placed copies of such annual reports on the table of each House of the Legislature. 
29. Accounts and Audits. - (1) The Agency shall cause to be maintained such books of account and 
other books as may be necessary for maintaining the accounts and in such form and manner as may 
be prescribed. 
(2)  The  Accounts  of  Agency  shall  be  audited  in  such  manner,  as  may,  in  consultation  with  the 
Comptroller and Auditor-General of India or his representative, the Accountant General, Bihar be prescribed. 
30. Disposal of surplus. - Any surplus arrived at after providing for interest on capital depreciation on 
buildings,  equipments  and  other  assets,  cost  of  development,  cost  of  administration  and  other 
expenses, shall be utilized for the liquidation of loans and such other purposes as may be considered 
necessary for carrying out the provisions of this Act. 
31. Filling up vacancies. - If for any reason, there is a vacancy in the Board or Executive Committee, 
the State Government shall fill such vacancy by appointing member of that category. 
32. Action taken not to be illegal if composition of Agency or Executive Committee incomplete. - 
No act or proceeding of the Board or their Executive Committee shall be deemed to be invalid merely 
because of any vacancy in or any defect in the constitution of the Board or the Executive Committee.  
33. Direction by the State Government. - For carrying out the purposes of this Act, the State Government 
may from time to time give to the Agency such general or special directions on matters of policy as it thinks 
fit and the Agency shall comply with such directions. 
34. Compulsory  Acquisition of land for the Agency. - Any land required by the Agency shall be 
acquired for the Agency under the provisions  of the land Acquisition  Act, 1894 (Act 1 of 1894) as 
amended in its application to the State. 
35. Members, Officers and Servants of the Agency to be public servants. - All members, officers 
and servants of the Agency whether representing or appointed by the Agency or the State Government 
shall be deemed, when acting or purporting to act in pursuance of the provisions of this Act to be public 
servants within the moaning of section 21 of the Indian Penal Code, 1860 (Act XIV of 1860). 
36. Power of Entry. - Any officers or servants of the Agency generally or specially authorized may. at 
all reasonable  times  enter  upon any land or premises  and do such things  as may be reasonably 
necessary for the purposes of lawfully carrying out any work of the Agency or for making any survey 
examination or investigation preliminary or incidental to the exercise of powers or the performance of 
functions by the Agency under this Act. 
 
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37. Protection for action taken under this Act. - (1) No suit, prosecution or legal proceeding shall lie 
against any person in the employment of the Agency for anything which is done or purported to be 
done in good faith under this Act. 
(2) No suit or other legal proceeding shall lie against the Agency for any damage caused or likely to be 
caused by anything done or purported to be done in good faith under this Act. 
38. Power to make rule. - (1) The State Government may, by notification in the Official Gazette make 
rules not inconsistent with this Act for carrying out all or any of the purposes of this Act. 
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide 
for the following matters, namely:- 
(i)  the  honoraria  and  allowances  to  be  paid  to  the  members  of  the  Board  or  the  Executive 
Committee; 
 
(ii) the manner in which meetings of the Board and the Executive Committee shall be held: 
 
(iii) the forms of the budget, the annual report and the annual financial statement shall be made 
available to the State Government; 
 
(iv) the procedure and conditions for the grant of loans and recovery of the dues of the Agency 
 
(v) the duties and power of the Managing Director. 
 
(3) Every rule made under the section shall be laid as soon as may be after it is made, before each 
House of the State Legislature while it is in session for a total period of not less than fourteen days 
which may be comprised in one session or in two successive sessions, and if, before the expiry of the 
session in which it is so laid or the session immediately following both Houses agree in making any 
modification in the rule or both Houses agree that the rule should not be made, the rule 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. 
39.  Power  to  make  regulations.  -  (1)  The  Board  may,  with  the  previous  approval  of  the  State 
Government  make  regulations  not  inconsistent  with  the  provisions  of  this  Act  or  the  rules  made 
thereunder, for carrying out its functions under this Act. 
(2) In particular, and without prejudice to the generally of the foregoing power, such regulations may provide 
for all or any of the following matters, namely:- 
(a) procedure for conduct of business at the meetings of the Board and the Executive Committee; 
(b) functions, powers and duties of officers and servants of the Agency; 
(c) appointments, promotions and conditions of services of officers and servants of the Agency; 
(d) manner in which charges, rates, dues, etc. shall be fixed and recovered; 
(e) punishments for breach of any regulations;  
(f) manner of preparation and publication of plans, programmes, etc. 
 
(3) Such regulations shall be published in the Official Gazette and the regulations shall have effect from 
the date of such publication. 
(4) The provision of sub-section (3) of section 38 shall apply to all such regulations made by the Board.  
40. Relationship of the agency with Panchayat Institution. - (1) Where a plan or scheme sanctioned 
under the provisions of this Act covers the jurisdiction  of more than one Zila Parishad, the powers 
 
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exercisable  and functions  performable  by the Panchayat  Samiti  or Zila Parishad  under the *[Bihar 
Panchayat Samitis and Zila Parishads Act or any other law in respect of execution of such plan of 
scheme shall be exercised and performed by the Agency notwithstanding anything contained in the * [Bihar 
Panchayat Samitis and Zila Parishads Act, 1961 (Bihar Act 6 of 1962) or any other law. 
(2) If the State Government considers it necessary for the purpose of implementation of any plan or scheme 
sanctioned under the provisions of this Act, to transfer to the Agency any power exercisable by a 
Panchayat Samiti or Zila Parishad under the provisions of the *[Bihar Panchayat Samitis and Zila Parishads  
Act,  it may  issue  a notification  providing  for  such  transfer  and  subject  to such  control, restrictions, 
conditions and reservations, and for such period as may be specified thereon: 
Provided  that no notification  transferring  any functions  exercisable  by the Panchayat  Samiti or Zila 
Parishad  to  the  Agency  shall  be  issued  without  prior  consultation  with  the  Zila  Parishad  in  the 
prescribed manner, but when Panchayati Raj Board has been constituted under section 60 of the * 
[Bihar Panchayat  Samiti and Zila Parishad  Act, 1961, this Board and not the Zila Parishad  will be consulted. 
*In view of applicability of this Act to Jharkhand [u/s 84, Bihar Reorganisation Act, 2000] this may be read as "Jharkhand". 
 
41. Provisions of this Act to prevail. - The provisions of this Act shall have effect notwithstanding 
anything inconsistent therewith contained in any other law for the time being in force. 
42. Winding up. - When the State Government is satisfied that the purpose for which an Agency was 
established under this Act have been substantially achieved so as to render the continuance of the 
Agency unnecessary, the State Government may. by notification in the Official Gazette declare that the 
Agency shall be dissolved with effect from such date as may be specified in the notification and the 
Agency shall be deemed to have been dissolved accordingly with effect from the said date and all the 
properties, funds and dues realisable by the Agency along with its liabilities shall devolve upon the 
State Government. 
43. Repeal and Saving. - (1) The Bihar Agricultural  and Rural Area Development  Agency Second 
 
Ordinance, 1978 (Bihar Ordinance no. 101 of 1978) is hereby repealed. 
(2) Notwithstanding such repeal, anything done or any action taken in exercise of any power conferred 
by or under the said Ordinance shall be deemed to have been done or taken in exercise of powers 
conferred by or under this Act as if this Act were in force on the day on which such thing or action was 
done or taken. 

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