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The PUNJABKHADIANDVILLAGEINDUSTRIESBOARD

Haryana · state statute
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Punjab Khadi and Village Industries Board 
Act, 1955 
(Punjab Act No. 40 of 1956) 
A CT 
(Amended upto October, 1983) 
HARYANA KHADI AND VILLAGE INDUSTRIES BOARD 
PANGHKULA
CONTENTS 
SECTI®NS 
1. Short title, extent and commencement 
2. Definitions. 
3. Incorporation of Board. 
4. Constitution of Board. 
5. Term of office and dissolution of Board. 
5A Chairman, Chief Executive, Secretary, Joint Secretary and other members 
hold office during the pleasure of Governor. 
6. Disqualifications for appointment as members of the Board. 
7. Omitted. 
8. Vacancy to be filled in as early as possible. 
9. Vacancy, defect in appointment etc , not to invalidate Acts and proceeding. 
10. Meeting of the Board. 
11. Appointment of Committees. 
11A Appointment of Financial Adviser. 
12. Functions and Powers of the Board. 
13. Power to make the contracts. 
14. General powers of the Board. 
14A Powers of Chief Executive. 
15. Powers of Secretary. 
16. Officers and Servants of the Board. 
17. Condition of service of officers and servants of the Board, 
18. Functions and duties of officers and servants 
19. Transfer of property, 
20. Funds of the Board. 
21. Application of fund and property. 
22, Subventions and loans to the Board. 
23. Preparation and submission of Annual Programme and Establishment 
schedule. 
24. Sanction of programme and Establishment schedule. 
25, Budget, 
26. Sanction of Budget. 
27. Supplementary programme and supplementary budget,
284 Aanual report. 
29. Further Reports, Satistics and Returns. 
30  Accounts and Audit. ) 
31. Directions by State Government. 
31 A Power to delegate ) 
32. Members of the Board and Members of .the Staff of Board to be publie 
servants. 
33. Protection of action taken under this Act. 
33 A Control of Government over the Board. 
34. Rules. 
35. Regulations. 
36. Saving. 
4 
THE PUANJB KHADI AND VILLAGE INDUSTRIES BOARD % ACT, 1955 
PUNJAB ACT NO. 40 of 1956 
The 25th October, 1956 (Received the assent of the President on the 16th October, 1956 and was first published in the PUNJAB GOVERNMENT GAZETTE (Extmordinary),‘r dated the 25th October, 1956). 
1 2 3 4 Year  No. Short title Whether effected by later Legislation, 
1956 40 The Punjab Khadi and Extended to ?he territories which, imme- Village Industries d iately before the Ist November, 1956, Board Act, 1955. were, comprised in the State of Patiala and East Punjab States Union, by Pun- jab Aci No 5 of 1957, Amended in pait by Punjab Act, 29 of 1957. 
AN 
ACT to provide for the establishment of a State Statutory Board for encouraging and intensifying the Khadi and Village Industries in 
Punjab. 
Be it enacted by the Legislature of the State of Punjab in the Sixth Year of the Republic of India as follows :— 
CHAPTER—I 
. PRELIMINARY Short title,  extent L (1) This Act may be called the Punjab Khadi and and commencement Village Industries Board Act, 1955, (2) It extends to the whole of the State of Punjab. (3) It shall come into force at once, Definitions 2. In this Act unless there is anything repugnant in the subject or context— 
(i) ““Board” means the Punjab Khadi and Village Industries Board constituted under Section 3. (ia) “Chief Executive" means the Chief Executive of the Board (Inserted vide amendment No 24-Leg/80 Date 28-7-80). 
(ii) 
(iif) 
(iv) 
™ 
(vi) 
(vii) 
5 
“Kbadi” means any handloom cloth  woven from 
yarn handspun in India. ' ““Prescribed”” means prescribed by rules made 
under this Act. 
““Village Industries” means such industries which 
generally form the normal occupation whether 
whole-time or part-time, of any class of the rural 
population of the State of Punjab and in particular 
such industries as may be recommended from time 
to time by the Commission appointed by the 
Government of India and such other industries as the State Government may, by notification in the 
official gazette, specify in this behalf in consultation 
with the Board, 
*“Government”” means the Government of the State 
of Punjab. 
“Commission” means the Khadi and Village Indu- 
stries Commission established under section 4 of 
the Khadi and Village Industries Commission Act, 
1956 (No. 61 of 1956). 
“Member” includes, ‘‘Chairman™ and “Chief 
Executive” and “Member of the Board” includes 
“‘Chairman of. the Board"" and *“Chief Executive of 
.the Board” (Substituted vide amendment No. 
24-Leg/80 Date 28.7.80). 
CHAPTER II 
ES_TABLISHMENT AND CONSTITUHON OF THE BOARD 
(1) For carrying out the purpose of this Act, the Incorporation’  of 
Board . 
3 
“’Government’ shall, as soon as possible, after the 
commencement of this Act, by a notification in the 
-official gazette, establish a Board to be called “The 
Punjab Khadi and Village Industries Board”. 
g
6 
(2) The Board shall be a body corporate having perp.tual 
, succession and a common seal and may sue_and be 
sued in its corporate name and shall be competent 
to acquire and hold and dispose of property both 
moveable and immoveable and to contract and do 
all things necessary for the purpose of this Act. 
4. (1) The Board shall consist of not more than 15 
members appointed by the Government, from time 
to time, including Chairman, Chief Executive, 
Secretary, Joint Secretary and other official and 
non-official members. 
(Substituted _ vide amendment No. 24-Leg/30 
Dated .8-7.80). 
Provided that — 
Counstitution of Board 
(a) the Chairman shall be a non-official member appo- 
inted by the Government; 
(Amended vide amendment 13th October, 1964) 
(b) The Government shall appoint a Chief Executive, a 
Secretary and a Joint Secretary from amongst the 
members of the Board; (Substituted vide amend- 
ment No 24 Leg 80 Dated 28-7-80.) 
(c) The Chief Executive shall be appointed from 
amongst officers of the rank of Head of the Depart- 
ment or Joint Secretary to the Government. (Inserted 
vide amendment No 24-Leg/80 Dated 28-7-80) 
(2) The Chairman and each pon-official member of the 
Board shall be paid from the funds of the Board 
such allowances as the Government may, from time 
to time, fix. The Chairman of the Board, if he 
is not a member of Parliament, shall also be paid 
from the funds of the Board such honorarium as the 
Government may, from time to time, fix. The 
official members shall draw their Travelling Allow- 
ance for attending meetings of the Board, orin 
connection with the performance of any duty assig- 
ned to them by the Board or the Government for 
the purposes of the Act admissible to them under 
the Punjab Travelling Allowance Rules as applica- 
ble to the State of Haryana from their respective 
departments. 
(Amended vide No. 29 Leg/73, dated 2-7-73);
Term of office and dis- 
solution of Board 
5. 
(2A) Notwithstanding  anything contained in. sub 
3) 
1) 
@ 
) 
section (2), the Chief Exccutive shall be paid from 
the funds of the Board such salary and allowances 
as may be prescribed. 
(Toserted vide amendment No. 24 Leg/80 dated 
28-7-80). 
The Board shall have powers to invite person 
specially qualified to advise on matters before the 
Board relating to an industry or having special 
knowledge of local conditions in the area where 
the industry in question is situated These persons 
shall be paid allowances at the rates admissible to 
other non-official members of the Board. 
The Board shall, unless soonmer dissolved by the 
Government, continue for a period of three years 
from the date of its establishment or till a new 
Board is appointed thereafter: 
Provided that the Government may, at any time 
with the previous approval of the State Legislature, 
by a notification in the official gazette, make a 
declaration that from such date, as may be specified 
in the notification, the Board shall be dissolved. 
Any member other than the Chairman and the Chief 
Executive, may at any time, resign his office by 
giving notice in writing to the Chairman of the 
Board and on its being accepted by the Government 
he shall be deemed to have vacated his office from 
the date of such acceptance, provided that the 
Chairman shall give such notice to the Government, 
(Substituted vide amendment No. 24-Leg80 
Dated 28-7-80), 
On the Board ceasing to exist, either by afflux of 
time or by dissolution by the Government as pro- 
vided in sub-section (1) any committee appointed 
under section 11 shall cease to function; and —
Chairman, Chief Exe- 
cutive, Secretary, 
Joint Secretary and 
other Members hold 
office during the 
pieasure of Governor. 
Disqualifications and 
appointment as 
members of the Board. 
all funds and other properties, which immediately 
before the Board ceased to exist were in its posses- 
sion for the purposes of this Act, shall vest the 
Government; 
i, all members shall vacate office as members of the 
iii. 
5.A 
Board ; and 
all rights, obligations and liabilities (including any 
liabilities under any contract) of the Board shall 
become the rights, obligations and liabilities of the 
Government, 
(Amended vide No. 20 Leg/72, dt. 16-10-72) 
Notwithstanding anything contained in section 5 
orany other provision of this Act, the Chairman, 
Chief Executive, Secretary, Joint Secretary and 
other members of the Board shall hold office during 
the pleasure of the Governor. 
(Substituted vide amendment No, 24 Leg/80 dt. 
28-7-80). 
6. (1) A person shall be disqualified for being appointed 
or for continuing as a member of the Board, if he— 
(a) holds any office of profit under the Board, other 
than the office of Chairman, Chief Executive, 
Secretary or Joint Secretary there of; 
(Substituted vide amendment No. 24-Leg[80 dt. 
28-7-80). 
(b) is ef unsound mind and stands so declared by a 
. ,competent Court; 
(c) is or at any time has been adjudicated insolvent;
9 
*{d) has directly or indirectly by himself, by his wife or ! som, or by dny partner any share or interest in any subsisting contract or employment with, by or on behalf of the Board; 
(e) is a"l)ircctor or a Secretary or a Manager or other salaried officer of any incorporated company or any co-operative society~which has any share or interest < '+ 's-in amy contract or employment with, by or on - behalf of the Board; - 
(f) being:non-official member, does not habitually wear *~ . khadi} (inserted vide amendment Act. 1963). 
"(8) is convicted of an offence involving moral turpitude. (inserted vide amendment jAct, 1963). 
‘6. (1A) A person shall-be disqualified as a member of the Board,if he— .. 
(2) is absenit Without permission from all the meetings of the Board for four successive months or for the ‘period in whic 'i_hrce—‘suocessivc meetings are held whif:hc’w;g: P ifwd is loilgcr; or 
,‘(b) ceases to reside in Haryana. 
(Inserted vide amendment No. 35-Leg/79 dt. 2-11-79). 
(2) (2) A person shall et be..disqualified under clause (a) 
- . of syb-section (1) by, reason only of his being a 
- : .member Teceiving .allowance or the Chairman 
receiving any ;honargrium or allowances as provi- 
ded in sub-section (2) of section 4. or the Chief 
‘Executive receiving salary and allowances 4 provi- ded in sub-section (2A) of the said section. (Su 
- tuted vide amendment'No: 24-Leg/80 df."28:7.80) 1 
' {b) A person shall not be disqulified under clause (d)’ 
" o (€)'of sub-sectdin (1) or be deemed to have any 
"““share of intorest inany contract or employment 
Removal or suspension 
of a member 
Vacancy to be filled 
in as early as possible. 
(c) 
10 
within the meaning of these clauses by reason only 
of his, or of the incorporated company ©f ofa 
co-operative society, of which he is2 Director, 
Secretary, Manager of other salaried officet baving 
a share ot interest in any newspaper in which any 
advertisement relating to any affairs of the Board i3 
inserted. 
A person shall not also be disqualified under 
clause (d)or (e) of sub-section (1) of be deemed 
to have any sbhareor interest in any contract or 
employment with, by oron behalf of, the Board by 
reason only-of his being 2 share-holder ot member 
of such a company Of society- 
(d) A person shall not also be disqualified, o7 be deemed 
ever to have been disqualified, under clause (@) or 
©) of sub-section (1), or be deemed 1O have any 
share or interest in any contract OT employment. 
with, by or on behalf of the Board, by reason of 
his being a Director of a Secretary oT 2 Manager 
or other salaried officer of 2 society registered 
or deemed to be registered under the Registration of 
Societies Act, 1860, or any other institution 
certified by the Commission or the Board : 
Provided that such person discloses to the Govern- 
ment the nature and extend of the share held by 
him from time to time (inserted vide amendment 
Act, 1963). 
7. Omitted vide amendment No. 3 <, Leg/79, dt. 2-11-79 
8. When a member dies or resigns as provided in sub- 
section (2) of section 5, or is subject to any of the 
disqualifications specified in section 6, or is other- 
wise removed, he shall cease to be a member of the
Vacancy, defect. 
appointement etc. not 
to invalidate acts and 
proceedings. 
Meetings of the Board. 
Appointment of 
Committees. 
10. 
(@) 
11 
Board, and any vacancy so occuring shall be filled 
by the Government as early as practicable: 
Provided that during any such vacancy the continu- 
ing members may act as if no vacancy has occured 
(Substituted vide amendment No. 35-Leg/79 dt. 
2-11-79). 
No act or proceeding of the Board under this Act, 
shall be questioned on the ground merely of the 
existence of eny vacancy in, or defect in the appo- 
intment of a member or the constituticn of the 
Board: 
Provided that the Board shall not act or take any 
proceedings, at any time when, by reason of any 
vacancy occuring the number of continuing non- 
official member is less than one-third of the total 
number of such non-official members in the Board. 
The Board shall from time to time make such 
arrangements with respect to the date, time, place, 
notice, management and adjournments of its 
meetings as may be determined by regulations made, 
by the Board subject to the following provisions, vizi~ 
Ordinary meeting shall be held once atleast in 
every three months. 
(b) The Chairman may, whenever he thinks fit, call 
© 
11. 
special meetings. 
The proceedings of the meetings of the Board shall 
be forwarded to Government, in the department 
concerned. 
Subject to any rules made under section 34 the 
Board may from time to time appoint one or more 
Committees for the purpose of sccuring efficient 
discharge of its functions and in particular for the 
purpose of ensuring that the said functions are
e 
Appoiatment of 
Financial Adviser. - 
Functions & Powers 
of the Board. 
e 
12 
exercised with due regard to the cireumstances and 
requirements of any particular Village Industries.” 
11 A(]) There shall be a Financial Adviser to the Board 
‘shall’ e appointed by the State Government. 
‘Thé*Govt. Tay entrust the functions of the Chief 
Accotints Officer to the Financial Adviser. 
The term of ofice, the conditions of service and the 
functions of ‘the Financial Adviser shall be such 
as ‘may be prescribed in consultation with the 
Board. (Inserted vide amendment No. 43-Leg/76, 
o dt: 28-7-76.) 
CHAPTER III o 
FU'NCI'IONS AND WERS OF THE BOARD 
12. (1) ltsballbe .the" duty. ‘of the Board to organise, 
@ 
develop and -propagate village industries and per- 
form such,,funchons as the Government may.. 
-from time to time and exercise such 
Without prejudice to the generality of the provisions 
_of sub-sectlon (1), the Board shall also in particular 
(@) 
() 
discharge and perform all or any of the following 
dities and functions, namely :- 
to start, encourage, assist and carry on Khadi and 
Village Industries and to carry on trade or business 
in such industries, and in the matters incidental to 
such trade or business; 
to help the people by providing them with work in 
their homes and to give them monetary help. The 
expression monetary help includes the giving of 
grants and loans or any of the purposes of this Act
(O] 
€d) 
(e) (i) 
(ii) 
-iii) 
(M) 
() 
(h) 
13 
on such terms and conditions as may be prescribed. (Amended vide amendment Act, 1961). 
to encourage establishment of Co-operative 
Societies and Societies Registered (Under the Societies  Registration Act 1860 or the Pepsa Societies Registration Act, 1954). 
to conduct training centres and to trained people there at with a view to equip them with the neces- sary knowledge for starting or carrying on Khadi and Village Industries; 
to manufacture tools and implements required for carrying on Khadi and Village Industries and to 
manufacture the products of such industries; 
to arrange for the supply of raw-materials and tools 
and implements required for the said purpose; and 
to sell and arrangé for the sale of the products of 
the said industries; 
to arrange for publicity and popularisation of 
finished products of Khadi and Village Industries 
by opening stores, shop, emporia or exhibitions and 
to take similar measures for the purpose; 
to endeavour to educate public opinion and to 
impress upon the public the advantages of patronis 
ing the products of Khadi and Village Industries; 
to seek and obtain advice and guidance of experts 
in Khadi and Village Industries; 
(i) to undertake and encourage research work in conne- 
ction with Khadi and Village Industries and to 
carry on such activities as are incidental and 
conducive to the objects of thisAct; and 
(i) to discharge such other duties and to perform such other functions as'the Government may direct for 
the purpose of carrying out the objects of this Aot.
Power to make 
comtracts. 
General Powers of 
Boaid. 
14 
13. (1) The Board may. enter into and perform all such 
(2) 
3) 
@ 
14 
) 
(ii) 
contracts as it may consider necessary or expedient for carrying out any of the purposes of this Act. 
Every contract shal] be made on behalf of the 
Board by the Chief Excutive. (Substituted vide amendment No. 24-Leg/80 dt. 28- 7-80). 
Every cortract made by the Chief Executive on 
behalf of the Board shall, subject to the provisions of this section, be entered into in such manner and form - as may be prescribea. (Substituted vide 
amendment No. 24-Leg/80 dt. 28-7 80). 
A contract not executed. in the manner provided 
in this section and the rules made thereunder shall not be binding on the Board. 
The Board shall, for the Ppurposes of carrying out its 
functions under this Act, have the following 
powers : — 
to acquire and hold such moveable and immovable 
Property as it deems necessary and to lease, sell or 
otherwise transfer any such property; 
Provided that in the case of immoveable property 
the aforesaid powers shall be exercised with the 
Pprevious sanction of the Government; 
to incure expenditure and undertake works in any 
area in the State for the framing and execution of 
such scheme as it may consider necessary for the 
purpose of carrying out the provisions of this Act 
or as may be entrusted to it by the Goverament, 
subject to the provisions of this Act and the rules 
made thereunder.
Powers of the Chief 
Executivs. 
Powe-s of Secretary. 
Officers and servants 
of the Board. 
Conditions of service 
of officers and servants 
of the Board. 
15 
14A. (1) The Chief Executive shall be responsible for the 
2) 
®) 
Q] 
15 
proper functioning of the Board and implementation 
of its decisions & discharge of its duties under this 
Act, (Substituted vide amendment No. 24-Leg/80 
dt. 28-7-80). 
The Chief Executive, may order in writing, delegate 
any of his powers to any other member. (Substi- 
tuted vide amendment No. 24-Leg/80 dt. 28-7-80). 
The Chief-Executive shall exercise general control 
over the Board. (Substituted vide amendment 
No. 24-Leg/80 dt. 28-7-80). 
In the absence of the Chief Excutive or during the 
period of his incapacity to attend to his duties for 
any reason, such member, as the Government may 
appoint, shall exercise the powers and discharge the 
duties of the Chief Executive under this Act. 
(Added vide amendment No. 24 Leg/80 dt. 28-7 80). 
The Secretary and Joint Secretary shall exercise 
such powers and perform such functions for and 
on behalf of the Board as may be determined by 
Regulations. ! 
CHAPTER—-IV 
APPOINTMENT OF OFFICERS AND SERVANTS 
16 
17. 
The Board may appoint such officers and servents as 
it considers necessary for the efficient performance 
of its functions. 
The pay and other conditions of service of officers 
and other servants of the Board shall be such as the 
Board may determine by Regulations. 
VAo wo ab UGS WL
Functions gnd duties 
©Of officers gnd servants 
Transfer of Property 
Funds of the Board. 
18. 
16 
The functions and duties of the officers, and servants of the Board shall be such as the Board may determine by Regulations. 
CHAPTER-—V 
FINANCE, ACCOUNTS AND AUDIT 
19. (1) The = Government may transfer to the Board 
2 
20. (1) 
) 
building land or any other property, moveable or immoveable, for use and management by the Board on such conditions and limitations as the Govern- ment may deem fit, for the purposes of this Act. 
The Government x;lay transfer to the Board such schemes or works in progress, with all their assets and liabilities as are run or managed by Government 
subject to such conditions and limitations as the Government may deem fit to impose for the purposes of this Act. 
The Board shall have its own fund and all receipts 
of the Board shall be credited there; to 4nd all Ppayments by the Board shall be made therefrom. 
The Board may accept grants, loans, subventions, 
donations and gifts from the Government or a local authority or other statutory body including the Commission or any private body, whether incorpo- 
rated or not, or an individual for all or any of the 
purposes of this Act. 
(3) All moneys belonging to the. fund of Board shall be 
© 
deposited in such manner as the Government may, 
by special or general order direct. 
Such accounts shall be operated upon bj{ such 
Officers jointly or individually as may be authorised 
by the Board.
Application of furds 
and property. 
Subventions and loaos 
to the Board. 
Preparation and subm- 
ission of Annual Prog- 
ramme and establish- 
ment Schedule. 
Sanction of prog- 
ramme and establish- 
ment schedule. 
21. 
22.(1) 
23. (1) 
@ 
®) 
2 
(2) 
(b) 
() 
24. (1) 
17 
All property, fund and other assests with the Board shall be held and applied by it subject to the provisions and for the purposes of this Act. 
The Government may, from time to time, make subventions and grants to the Board for the pur- poses of this Act on such terms and conditions as the Government may determine. 
The Government may, from time to time, advance loans to the Board, on such terms and conditions not inconsistent with the Pprovisions of this Act as the Government may determine, 
In each year, on such date as may be fixed by the Government the Board shall prepare and forward : Programme of its work; and 
a schedule of the staff of officers and servants already employed and to be employed during the next year, to the Government in such form as may be prescribed. 
The programme of its work shall contain— 
such particulars of the scheme which the Board Proposes to execute whether in part or whole, during the next year; 
Particulars of any work or undertaking which the Board proposes to organise during the next year for the purposes of carrying out its functions under the Act; and 
such other particulars as may be prescribed. 
The Government may approve and sanction the programme and the schedule of the staff’ of officers and servants forwarded to it with such modifica- tions as it deems fit.
Budget 
Sanction of Budget 
Supplementary prog- 
ramme and supple- 
mentary budget. 
Annual Report. 
26. 
2 
25. 
18 
The Board may send a programme of its schemes 
formulated in accordance with the policy or 
scheme of the Commission directly to the Commi- 
ssion for allotment of funds by or approval of the 
Commission. 
The Board shall, on such date as may be fixed by 
the Government, prepare and submit to the Gover- 
nment, the budget for the next financial year show- 
ing estimated receipts and expenditure on capital 
and revenue accounts according to the programme 
and schedule of the staff sanctioned by the Govern- 
ment. - 
(1) The Government may sanction the Budget submitt- 
2) 
(@) 
(b) 
27. 
28. 
ed to it with such modifications as it deems proper. 
The Board shall not be competent to transfer funds 
sanctioned for one scheme to another scheme :— 
where funds in respect of such schemes are allotted 
by the Commission, without the prior approval of 
the Commission; and 
in any other case, without the prior approval of the 
Government. 
(Amended vide amendment Act, 1961). 
The Board may submit a supplementary programme 
and supplementary budget for the sanction of 
Government in such form and on such date as the 
Government may prescribe, and provisions of 
sections 25 and 26 shall apply to such supplementary 
programme and budget respectively. 
The Board shall prepare and forward to the Gover- 
nment in such manner as may be prescribed, an 
annual report within three months after the end of
Further Reports Statis- 
ties and Returns. 
Accounts and Audit 
Direction by State 
Government, 
19 
the financial year giving a complete account of itg activities during the previous financial year. 
- The Board shall, before such date and at such intervals and in such manner as the Gover- nment may from time to time direct, submit to the Government a report on such matter and statistics and returns as the Government may direct. 
30. (1) The accounts of the Board shall be maintained and 
2 
3) 
(4) 
O] 
31, (1) 
an annul statement of accounts shall be prepared in such manner as may be prescribed. 
The accounts of the Board shall be audited bya Chartered Accountant or by such person as Government may direct. 
As soon as the accounts of the Board are audited, the Board shall send a copy thereof with a copy of the report of the Auditor thereto to the Government. 
The audited accounts of the Board shall be sub- mitted to the Government in such manner as may 
be prescribed, 
The Board shall comply with such directions as the Government may, after the perusal of the report of the Auditor, think fit to issue. 
CHAPTER —VI 
MISCELLANEOUS 
In the discharge of its functions, the Board shall be guided by such instructions on question of policy 
as may be given to it by the Government.
Power to Delegate. 
Members of the Board 
and Members of the 
staff of the Board to 
be public servants. 
Recovery of Board’s 
ducss as arrears of 
land revenue 
Protect'on of action 
taken under this Act. 
Control of Govern- 
ment over Board. 
2 
31A. The Board may, 
32: 
20 
If any dispute arises between the Government and 
the Board as to whether a question is or is nota 
question of policy, the decision of the Government 
shall be final. 
by resolution, direct that any 
power exercisable by it under this Act or the regula- 
tions made thereunder, except the power to make 
regulations, may also be exercised by the Chief- 
Executive or Member Sccretary, as the case may 
be, of the Board. (Substituted vide amendment 
No. 24-Leg/80 dt. 28-7-80). 
Member of the Board and members of the staff of 
the Board shall be deemed when acting or purport- 
ing to act in pursuance of any of the provisions of 
this Act to be public servants within the meaning 
of Section 21 of the Indian Penal Code, 1860 
(XLV of 1860). 
32A. All sums, including grants and loans given by the 
33. 
33A (i) 
Board or any interest or costs in respect thereof, 
becoming due to the Board under this Act, whether 
before or after the commencement of the Punjab 
Khadi and Village Industries Board (Amendment) 
Act, 1961, and whether such sums have become 
due by virtue of any contract or otherwise, shall 
be recoverable as arrears of land revenue. 
(inserted vide Amedment Act, 1961). 
No suit, pmseculionbr other legal proceeding shall 
lie against any person for anything which is in good 
faith done or purported to be done under this Act. 
The Government shall exercise superintendence and 
control over the Board and its officers and may call 
for such information as it may deem necessary and,
2 
(2) 
(b) 
21 
in the event of its being satisfied that the Board is 
not functioning properly or is abusing its powers 
or is guilty of corruption or mismanagement, it 
may, by notification, suspend the Board : 
Provided that the Board shall be reconstituted 
within a period of one year from the date of its 
suspension. 
when the Board is suspended under sub-section (1) 
the following consequences shall ensue, namely :— 
all members of the Board and its Committees, 
including the Chirman, Chief Executive, Secretary 
and Joint Secretary of the Board, shall, from the 
date of the notification, vacate their offices; 
all powers, duties and functions, which under the 
provisions of this Act or any regulation made there- 
under, are to be exercised by the Board or any 
committee thereof or by the Chairman, Chief- 
Executive, Secretary or Joint Secretary or any other 
officer of the Board, shall during the period of 
suspension, be exercised and performed by such 
person (to be called the administrator) as may be 
appointed by the Government in this behalf; 
Provided that the Administrator may, subject to 
the approval of the Government, delegate any of his 
powers, duties or functions to such other person 
as he may think fit; 
all properties, including the Board fund, vested in 
the Board shall, until it is reconstituted, vest in the 
Gowernment. (Substitued vide amend No. 24- 
Leg/80 dt, 28-7-80).
Rules. 
22 
34. (1) The Government may, by notification in the ofiiéial 
Gazette, make rules for carrying out the purposes 
of this Act. 
(2) In particular and without prejudice to the generality 
of the foregoing powers such rules may provide for 
all or any of the following matters : — 
(a) the allowances of non-official members of the Board 
and the honorarium and allowances of the Chair- 
man under sub-section 4 (2); 
(Anfended vide amendment 13th Oct., 1964) 
(aa) The salary and allowances of the Chief Executive 
under Sub-section (2A) of Section 4 (Insterted 
vide amendment No. 24-Leg/80 dt. 28-7-80). 
(b) the functions of the Board under scction 12; 
(c) the manner and form in which contracts shall be 
entered into under section 13; 
(d) the particulars of the programme under section 
23 (1); 
(¢) the form in which and the date before which the 
supplementary programme shall be submitted under 
section 27; 
(f) the form in which and the date before which the 
supplementary budget shall be submitted under 
section 27; 
(g) the manner in which the annual report shall be 
prepared and forwarded to the Government under 
section 28; 
(h) the manner of maintenance of accounts and prepara- 
tion of annual statement of aecounts under section 
30 (1); 
(i) any other matter which Is, or may be, prescribed 
under this Act,
Regu.ations. 
Saving. 
23 
35. (1) The Board may, with the previous sanction of the 
State Government, make regulations consistent 
with this Act and the Rules mace there-under and 
such regulations shall be notified in the Official 
Gazette. 
(2) In particular and without prejudice to the generality 
of the foregoing power, the Board may make regula- 
tions providing for— 
(a) the procedure and disposal of its business; 
(b)j remuneration, allowances and other conditions of 
service of members of the staff of the Board; 
(¢) functions and duties of the Secretary, J oint Secre- 
tary and other members of the staff of the Board; 
(d) functions of committees and the procedure to be 
followed by such Committees in the discharge of 
their functions. 
36. Nothing in this Act shall be deemed to apply to 
any industry declared to be a Scheduled industry 
under the Industries (Development and Regulation) 
Act, 1951, or to affect any of the provisions of the 
said Act. 
Printed at 
Vinny Printers, 2015, Sector 15-C, Chandigach.—— 

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