The JAMMU AND KASHMIR KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965

KHADI AND VILLAGE INDUSTRIES
BOARD  ACT, 1965
(Act No. XVI of 1965)
KHADI  AND VILLAGE INDUSTRIES BOARD ACT, 1975 71
THE JAMMU AND KASHMIR KHADI AND VILLAGE
INDUSTRIES BOARD ACT, 1965
(Act No.  XVI of 1965)
CONTENTS
Preamble.
Section.
CHAPTER I
Preliminary
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
The Khadi and Village Industries Board
3. Establishment and incorporation of Board.
4. Constitution of Board.
5 Financial Advisor of the Board.
6. Resignation of office of members.
7. Proceedings presumed to be good and valid.
8. Temporary association of persons with the Board for particular purposes.
9. Meetings of the Board.
10. Terms of office and other conditions of service of Chairman, Vice-Chairman,
Secretary and other members of the Board.
11. Powers and duties of the Secretary.
12. Officers and servants of Board and conditions of their service.
13. Standing Finance Committee.
14. Appointment of  other Committee.
72 KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965
Section.
CHAPTER III
Functions and Powers of the Board
15. Functions of Board.
16. General powers of the Board.
17. Powers to make contracts.
18. Powers of the Commission to give directions.
CHAPTER IV
Preparation and Submission of  Programme
19. Preparation and submission of  programme.
20. Sanction of programme.
21. Supplementary programme.
22. Powers of  Board to alter schemes.
CHAPTER V
Finance, Accounts, Audit and Reports
23. Transfer of property.
24. Funds of the Board.
25. Application of fund and property.
26. Subventions and loans to the Board.
27. Budget.
28. Supplementary budget.
29. Annual Report.
30. Returns and Reports.
31. Accounts and Audit.
KHADI  AND VILLAGE INDUSTRIES BOARD ACT, 1975 73
Section.
CHAPTER VI
Miscellaneous
32. Members of the Board and officers and servants of the Board to be public
servants.
33. Protection of action taken under this Act
34. Power to make rules.
35. Power to make regulations.
36. Dissolution of the Board.
37. Recovery of arrears.
38. Power to write off losses.
39. Repeal and saving.
–––––––
74 KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965
KHADI  AND VILLAGE INDUSTRIES BOARD ACT, 1975 75
THE JAMMU AND KASHMIR KHADI AND VILLAGE
INDUSTRIES BOARD ACT, 1965
(Act No. XVI of 1965)
[Received the assent of the Governor on the 18th April, 1965 and
published in Government Gazette dated 18th April, 1965].
An Act to amend and consolidate the Law relating to the establishment
of the State Statutory Board for encouraging and intensifying the Khadi and
Village Industries in the 1[Union territory of Jammu and Kashmir].
Be it enacted by the Jammu and Kashmir State Legislature in the
Sixteenth Year of the Republic of India as follows :––
CHAPTER I
Preliminary
1. Short title, extent and commencement.––(1) This Act may be called
the Jammu and Kashmir Khadi and Village Industries Board Act, 1965.
(2) It extents to 2[the Union territory of Jammu and Kashmir].
(3) It shall come into force 3[with effect from the 25th day of April, 1986.]
2. Definitions.––In this Act, unless the context otherwise requires, ––
(a) ‘‘Board’’ means the Jammu and Kashmir Khadi and Village
Industries Board, established under section 3 ;
(b) ‘‘Commission’’ means the Khadi and Village Industries Com-
mission established under section 4 of the Khadi and Village
Industries Commission Act, 1956 (Central Act 61 of 1956) ;
(c) ‘‘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, and includes ready-made
garments made out of such cloth ;
1. Substituted by S.O. 1229 (E) dated 31.03.2020 for “State”.
2. Substituted ibid for “the whole State”.
3. Enforcement date notified by Act XI of 1988, s. 1.
76 KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965
(d) “Village industries” means––
(i) all or any of the industries specified in the Schedule to the
Khadi and Village Industries Commission Act, 1956 (Central
Act 61 of 1956) and includes any other industry deemed to
be specified in the said Schedule by reason of a notification
issued by the Central Government under section 3 of the said
Act ; and
(ii) any other industry specified in this behalf by the Government,
by notification in the *[Government Gazette], in consultation
with the Commission and the Board ;
(e) “prescribed” means prescribed by rules made under this Act ;
(f) “regulations” means regulations made by the Board under this
Act ;
(g) “Chairman” means Chairman of the Board ;
(h) 1[“Vice-Chairmen”] means 1[Vice-Chairmen] of the Board ;
(i) “member” means member of the Board.
CHAPTER II
The Khadi and Village Industries Board
3. Establishment and incorporation of Board.––With effect from such
date as the Government may, by notification, fix in this behalf, there shall be
established a Board to be called the Jammu and Kashmir Khadi and Village
Industries Board. It 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.
4. Constitution of Board.–2[(1) The Board shall consist of not more than
fifteen members and not less than nine members to be appointed by the
Government from time to time, excluding the Member-Secretary appointed under
sub-section (4). 3[One-half of the members] shall be non-officials who are
* Now Official Gazette.
1. Substituted by Act IV of 1966 for “Vice-Chairman”.
2. Sub-section (1) substituted by Act IV of 1966.
3. Substituted by Act XI of 1988, s. 2.
KHADI  AND VILLAGE INDUSTRIES BOARD ACT, 1975 77
interested in the contructive activites and who have abiding interest in the
Khadi and Village industries programmes. From among the official members of
the Board, Director Community Development and National Extension Service,
Registrar Co-operative Societies and the Director of Industries and Commerce
shall be ex-officio members of the Board].
(2) One of the members of the Board shall be appointed by the Government
as the Chairman of the Board.
1[(3) The Government may appoint one or two Vice-Chairmen from
amongst the members and they shall exercise such of the powers and perform
such of the duties of the Chairman as may be prescribed or as may be delegated
to them by the Chairman.
(4) The Government shall, after consulation with the Board, appoint a
Secretary of the Board, who shall also be an ex-officio member].
(5) The appointment of members and Chairman, 2[Vice-Chairmen] and
Secretary of the Board may be made in consulation with the Commission.
(6) In the event of any vacancy in the office of a member of the Board by
reasons of death, resignation or removal, such vacancy shall be filled in by
appointment by the Government and the member appointed in such vacancy
shall hold office for the unexpired term of his predecessor.
(7) The Chairman, 2[Vice-Chairmen], Secretary and other members of the
Board shall receive such allowances as may be preccribed and all such
allowances shall be paid from the funds of the Board.
5. Financial Advisor of the Board.––(1) The Government shall appoint a
person not being a member to be the Financial Advisor of the Board. The
Financial Advisor may also function as the Chief Accounts Officer.
(2) Such appointment as well as the term of office, the conditions of
service and the functions of the Financial Advisor shall be such as may be
prescribed in consulation with the Board.
6. Resignation of office of members.––Any member may resign his office
by giving notice in writing to the Government and on such resignation being
notified in the *[Government Gazette] by the Government, shall be deemed  to
have vaccated his office.
1. Sub-sections (3) and (4) substituted by Act IV of 1966.
2. Substituted ibid for “Vice-Chairman”.
* Now Official Gazette.
78 KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965
7. Proceedings presumed to be good and valid.––No act or proceeding
of the Board shall be questioned or invalidated merely by reason of any vacancy
in its membership or on account of resignation, death or otherwise or by reasons
of any defect in the constitution thereof.
8. Temporary association of persons with the Board for particular
purposes.––(1) The Board 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 the Board under sub-section (1) for any
purpose shall have the right to take part in the discussions of the Board relevant
to that purpose, but shall not have the right to vote and shall not be a member
for any other purpose.
(3) The Government may, by order, depute one or more officers of the
Government to attend any meeting of the Board and to take part in the
discussions of the Board but such officer or officers shall not have the
right to vote.
9. Meetings of the Board.––The Board shall meet at such times and
places and shall, subject to the provisions of sub-sections (2) to (4), observe
such rules of procedure in regard to transaction of business at its meetings
(includings the quorum at meetings) as may be provided by regulations made
by the Board under this Act ; provideed that the Board shall meet at least once
in every two months.
(2) The Chairman may, whenever he thinks fit, call special meetings of the
Board.
1[(3) The Chairman, or in his absence one of the Vice-Chairmen as may be
chosen by the members present at the meeting, or if both the Vice-Chairmen are
also absent, such a member as may be chosen by the members present from
amongst themselves, shall preside at a meeting of the Board].
(4) All questions at a meeting of the Board shall be decided by the 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. Sub-section (3) substituted by Act IV of  1966.
KHADI  AND VILLAGE INDUSTRIES BOARD ACT, 1975 79
(5) The proceedings of the meeting of the Board shall be forwarded to the
Government and the Commission within fifteen days of every meeting.
10. Terms of office and other conditions of service of Chairman, 1[Vice-
Chairmen], Secretary and other members of the Board.––The terms of office
and the terms and conditions of service of the Chairman, the 1[Vice-Chairmen],
the Secretary and other members of the Board shall be such as may be prescribed.
11. Powers and duties of the Secretary.––The Secretary shall exercise
such powers and discharge such duties as may be prescribed or as may, from
time to time, be delegated to him by the Government or by the Chairman.
12. Officers and servants of  Board  and conditions of their service.––
(1) (a) The Board shall appoint an Executive Officer to manage the affairs of
the Board.
(b) The functions, duties and powers of the Executive Officer shall be
such as may be fixed by the Board, with the prior approval of the Government.
(c) The Executive Officer may be a Govermnet servant whose services
are placed at the disposal of the Board by the Government and if he is not a
Government servant, his remuneration, allowances and other conditions of
service shall be such as may be fixed by the Government.
(2) The Board may appoint such other officers and servants as it may
consider necessary for the efficient discharge of its functions :
Provided that the Board may delegate its powers in this behalf to the
Chairman or other members or officers of the Board.
(3) Subject to the provisions of clause (c) of sub-section (1), the
remuneration, allowances and other conditions of service of the officers and
servants of the Board shall be such as may be determined by regulations.
13. Standing Finance Committee.––The Board may constitute from
among the members of the Board a Standing Finance Committee to exercise
such powers and perform such functions relating to finances of the Board as
may be laid down by regulations made by the Board.
14. Appointment of  other Committee.––Subject to any rules made in this
behalf, the Board may, from time to time, appoint one or more Committees for
1. Substituted by Act IV of 1966 for “Vice-Chairman”.
80 KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965
the purposes of securing the efficient discharge of its functions and in particular
for the purpose of securing that the functions are discharged, with due regard
to the circumstances and requirements of Khadi or any particular village
industry. Such Committees may be appointed for any particular areas.
CHAPTER III
Functions and Powers of the Board
15. Functions of Board.––(1) It shall be the duty of the Board to encourage,
organise, develop and regulate Khadi and Village industries and perform such
functions as the Government may prescribe from time to time.
(2) Without prejudice to the generality of the provisions of sub-section
(1), the Board shall also in particular discharge and perform all or any of the
following duties and functions namely :––
(a) to start, encourage, assist and carry on Khadi and Village indus-
tries and to carry on trade or business in such industries and in the
matters incidental to such trade or business ;
(b) to help the people by providing them with work in their homes and
to give loans and other form of monetary help to individuals or
societies or institutions on such terms as may be prescribed ;
(c) to encourage establishment of co-operative societies for khadi and
village industries ;
(d) to conduct training centres and to train people thereat with a view
to equipping them with the necessary knowledge for starting or
carrying on Khadi and Village industries ;
(e) (i) to manufacture tools and implements required for carrying on
Khadi and Village industries and to manufacture the products
of such industries ;
(ii) to arrange for the supply of raw-materials and tools and
implements required for the said purposes ; and
(iii) to sell and to arrange for the sale of the products of the said
industries ;
(f) to arrange for  publicity and popularising of finished products of
Khadi and Village industries by opening stores, shops, emporiums
or exhibitions and to take similar measures for the purpose ;
KHADI  AND VILLAGE INDUSTRIES BOARD ACT, 1975 81
(g) to endeavour to educate public opinion and to impress upon the
public the advantages of patronising the products of khadi and
village industries ;
(h) to seek and obtain advice and guidance of experts in Khadi and
Village Industries ;
(i) to undertake and encourage research work in connection with Khadi
and Village Industries and to carry on such activities, as are inci-
dental and conducive to the objects of this Act ;
(j) 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 Act.
16. General powers of the Board.––The Board shall for the purpose of
carrying out its functions under this Act have the following powers, namely:––
(a) to acquire and hold such movable and immovable property as it
deems necessary and to lease, sell or otherwise transfer any such
property :
Provideed that any lease, sale or other transfer to any person or
authority of any immovable property belonging to the Board shall be
null and void unless it is sanctioned by the Government ;
(b) to incur expenditure and undertake any work in any area in the
1[Union territory of Jammu and Kashmir] for the framing and creation
of such schemes 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 Government.
17. Powers to make contracts.––(1) The Board may enter into and perform
all such contracts as it may cosnsider necessary or expedient for carrying out
any of the purposes of this Act.
(2)  Every contract shall be made on behalf of the Board by its Chairman ;
provided that the Chairman may by an order in writing delegate his powers in
this behalf to the Vice-Chairman or to the Secretary of the Board.
(3) Every contract made on behalf of the Board shall, subject to the
provisions of this section, be entered into in such manner and form as may be
prescribed.
1. Substituted by S.O. 1229 (E) dated 31.03.2020 for “State”.
82 KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965
(4) A contract not executed in the manner provided in this section and
the rules made thereunder, shall not be binding on the Board.
18. Powers of the Commission to give directions.––In the performance
of its functions under this Act, the Board shall be bound by such directions as
the Commission may give to it from time to time.
CHAPTER IV
Preparation and Submission of  Programme
19. Preparation and submission of  programme.––(1) In each year, on
such date as may be fixed by the Government, the Board shall prepare and
forward to the Government a programme of work.
(2) The programme shall contain––
(a) particulars of the schemes which the Board proposes to exccute
whether in part or whole during the next year ;
(b) particulars of any work or undertaking which the Board proposes
to execute during the next year for the purpose of carrying out its
functions under this Act ; and
(c) such other particulars as may be prescribed.
20. Sanction of programme.––The Government may, in consultation with
the Commission, approve and sanction the programme in whole or with such
modification as it deems fit.
21. Supplementary programme.––The Bord may prepare and forward a
supplementary programme for the sanction of the Government in such form
and before such date as the Government may prescribe and the provisions of
section 19 shall apply to such supplementary programme.
22. Powers of Board to alter schemes.––The Board may, with the previous
approval of the Commission, make any alteration in any scheme so long as the
aggregate amount sanctioned for the scheme is not exceeded. A report of the
alteration shall be sent to the Government in such form and within such time as
may be prescribed.
KHADI  AND VILLAGE INDUSTRIES BOARD ACT, 1975 83
CHAPTER V
Finance,  Accounts, Audit and Reports
23. Transfer of property.––The Government may transfer to the Board
buildings, land or any other property, whether movable or immovable, for use
and management by the Board on such conditions and limitions as the
Government may deem fit for the purpose of this Act.
24. Funds of the Board.––(1) The Board shall have its own fund and all
receipts of the Board shall be credited thereto and all payments by the Board
shall be met therefrom.
(2) The Board may accept grants, subventions, donations and gifts and
receive loans from the Government or a local authority or any body or
association, whether incorporated or not, or an individual for all or any of the
purposes of this Act.
(3) All moneys belonging to the fund of the Board shall be deposited in
the State Bank of India or with the agents of the State Bank of India or where
there is neither an office of the State Bank of India nor an agent of the State
Bank of India, in a Government Treasury or be invested in such securities as
may be approved by the Government :
1[Provided that the funds received from the Government as grant-in-aid
shall be deposited in the Jammu and Kashmir Bank Ltd. or in its branches.]
(4) The accounts of the Board shall be operated upon by such officers
jointly or individually as may be authorised by the Board.
25. Application of fund and property.––All property, fund and other
assts of the Board shall be held and applied by it subject to the provisions and
for the purposes of this Act.
26. Subventions and loans to the Board.––(1) The Government may,
from time to time, make subventions and grants to the Board for the purpose of
this Act on such terms  and conditions as the Government may determine in
each case.
(2) The Board may, from time to time, with the previous sanction of the
Government and subject to the provisions of this Act and such conditions as
the Government may determine, borrow any sum required for the purposes of
this Act :
1. Proviso inserted by Act III of 1973, s. 2.
84 KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965
Provided that the previous sanction of the Government shall not be
necessary to borrow any sum from the Commission.
27. Budget.––(1) The Board shall, by such date in each year as may be
prescribed, prepare and submit to the Government for approval the budget in
the prescribed form for the next financial year showing the estimated receipts
and expenditure in respect of Khadi and Village industries respectively during
that financial year. The Board shall forward a copy of the budget to the
Commission for information and remarks, if any.
(2) Subject to the provisions of sub-sections (3) and (4), no sum shall be
expended by or on behalf of the Board unless such expenditure is coverd by a
specified provision in the budget approved by the Government.
(3) The Board may, within the respective limits of the budjet, sanction
any re-appropriation from one head of expenditure to another or from a
provision made for one scheme to that in respect of another :
Provided that no re-appropriation from the head ‘loan’ to any other head
or expenditure and vice versa in the budget shall be sanctioned by the Board
except with the previous approval of the Government and the Commission.
(4) The Board may, within such limits and subject to such conditions as
may be prescribed, incur expenditure in excess of the limit provided in the
budget approved by the Government under any head of expenditure or in
connection with any particular scheme so long as the aggregate amount in
either budget approved by the Government is not exceeded.
28. Supplementary budget.––The Board may submit a supplementary
budget for the sanction of the Government in such form and before such date
as the Government may prescribe and the provisions of section 27 shall apply
to such supplementary budget.
29. Annual Report.––(1) The Board shall prepare and forward to the
Government in such manner as may be prescribed  an annual report within
three months from the end of the financial year giving a complete account of
its activites during the previous financial year along with a copy of the annual
statement of accounts referred to in section 31.
(2) The Board shall prepare and forward to the Commission an annual report
within three months from the end of the financial year giving a complete account of
the funds received by the Board from the Commission and activities carried on by
the Board from and out of such fund during the previous financial year.
KHADI  AND VILLAGE INDUSTRIES BOARD ACT, 1975 85
(3) The report received by the Government under sub-section (1) shall be
laid before 1[Legislative Assembly of the Union territory of Jammu and Kashmir]
as soon as may be after it is received by the Government.
30. Returns and Reports.––(1) The  Board shall furnish to the Government
and the Commission at such time and in such form and manner as may be
prescribed or as the Government or the Commission may direct, such returns
and statements and such particulars in regard to proposed or existing
programme for the promotion and development of Khadi and Village Industries
as the Government may, from time to time, require.
(2) Without prejudice to the provisions of sub-section (1), the Board
shall, as soon as possible after the end of each financial year, submit to the
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 programme during the
previous financial year.
(3) All returns, statements and particulars furnished by the Board to
the Government under sub-section (1) shall as soon as possible after they
are so furnished be placed on the Table of 1[Legislative Assembly of the
Union territory of Jammu and Kashmir].
31. Accounts and Audit.––(1) The Board shall maintain proper accounts
and the relevant records and prepare an annual statement of accounts including
the profit and loss acount and the balance sheets in such form as may be
prescribed.
(2) The accounts of the Board shall be audited by such persons as the
Government may appoint in this behalf.
(3) The Auditors appointed by the Commission shall have the right to
audit and inspect the accounts of the Board pertaining to the funds advanced
by the Commission.
(4) The person appointed under sub-sections (2) and (3) shall, in
connection with such audit, have such rights, privileges and authority, as may
be prescribed and in particular, such auditor 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 Board.
(5) The accounts of the Board as certified by such auditor together
with the audit report thereon shall be forwarded annually to the Government
1. Substituted by S.O. 1229 (E) dated 31.03.2020.
86 KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965
and the Commission before such date as the Government may specify in
this behalf.
(6) The Board shall comply with such directions as the Government may,
after perusal of the report of the auditor, think fit to  issue.
CHAPTER VI
Miscellaneous
32. Members of the Board and officers and servants of the Board to be
public servants.––Members of the Board and officers and servants of the
Board shall be deemed when acting or purporting to act in pursunance of any
of the provisions of this Act to be public servants within the meaning of
section 21 of the 1[Indian Penal Code 45 of 1860)].
33. Protection of action taken under this Act.––No suit, prosecution or
other legal proceedings shall lie against any person for anything which is in
good faith done or purported to be done under this Act.
34. Power to make rules.––(1) The Government may, by notification,
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 :––
(a) the place at which the office of the Board shall be located ;
(b) the term of office of, and the manner of filling casual vacancies
among, the members of the Board and the terms and conditions of
service of the Chairman, 2[Vice-Chairmen,] the Secretary and the
other members of the Board including the salaries and allowances
to be paid to them and travelling and daily allowances to be drawn
by them ;
(c) the disqualifications for membership of the Board and the procedure
to be followed for removing a member who is or becomes subject to
any disqualification ;
(d) powers and duties to be exercised and performed by the Chairman
and the  2[Vice-Chairmen] :
1. Substituted by S.O. 1229 (E) dated 31.03.2020 for “Jammu and Kashmir State Ranbir
Penal Code, Samvat 1989”.
2. Substituted by Act IV of 1966.
KHADI  AND VILLAGE INDUSTRIES BOARD ACT, 1975 87
(e) the conditions subject to which and the mode in which contracts
may be entered into by or on behalf of the Board ;
(f) constitution of the Standing Finance Committee ;
(g) the procedure to be followed in the performance of the functions
by members of the Board ;
(h) the powers and duties to be exercised and discharged by the
Secretary, the Financial Advisor, the Executive Officer and any other
officer of the Board ;
(i) the date by which and the form in which the budget and the
supplementary budget shall be prepared and submitted in each
year under sections 27 and 28 ;
(j) the procedure to be followed for placing the Board in possession
of funds ;
(k) the procedure to be followed and the conditions to be observed in
borrowing moneys and in granting loans ;
(l) the form and manner in which the accounts of the Board shall be
maintained under section 31 ;
(m) the form and manner in which the returns, reports or statements
shall be submitted under section 30 ; and
(n) any other matter which has to be, or may be, prescribed.
(3) All rules made and all notifications issued under this Act shall, as
soon as possible after they are made or issued, be placed on the Table of
1[Legislative Assembly of the Union territory of Jammu and Kashmir] and shall
be subject to such modification by way of amendment or repeal as the Lagislature
may make either in the same session or in the next session.
35. Power to make regulations.––(1) The Board  may, with the previous
sanction of the Government by notification, make regulations, not inconsistent
with this Act and the rules made thereunder, for enabling it to perform its
functions under this Act.
1. Substituted by S.O. 1229 (E) dated 31.03.2020.
88 KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965
(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 Board other than the Secretary
including the payment of travelling and daily allowances in respect
of journeys undertaken by such officers and servants for the
purposes of this Act ;
(b) the time and place of meetings of the Board, the procedure to be
followed in regard to transaction of business at such meetings and the
quorum necessary for the transaction of such business at a meeting ;
(c) functions of committees and the procedure to be followed by such
committees in the discharge of their functions ;
(d) the delegation of powers and duties to the Standing Finance
Committee, Secretary or any employee of the Board ;
(e) the maintenance of minutes of meeting of the Board and the
transmission of copies thereof to the Government and the
Commission ;
(f) the persons by whom and the manner in which payments, deposits
and investments may be made on behalf of the Board ;
(g) the custody of moneys required for the current expenditure of the
Board and investment of moneys not so required ;
(h) the maintenance of accounts.
(3) The Government may, by notification, rescind any regulation made
under this section and thereupon the regulation shall cease to have effect.
1[36. Dissolution of the Board.––(1) If at any time the Government is
satisfied that––
(a) the Board has without reasonable cause or excuse, made default in
the discharge of its duties or in the performance of its functions
imposed or entrusted by or under this Act or acceeded or abused
its powers ; or
1. Section 36 substituted by Act III of 1973, s. 3.
KHADI  AND VILLAGE INDUSTRIES BOARD ACT, 1975 89
(b) circumstances have so arisen that the Board is rendered unable or
may be rendered unable to discharge its duties or perform its
functions under this  Act ; or
(c) it is otherwise expedient or necessary to dissolve the Board ;
the Government may, by notification in the *[Government Gazette], direct that the
Board shall be dissolved from the date specified in the notification ; and thereupon
the Board shall be deemed to be dissolved accordingly :
Provided that the Government shall, before dissolving the Board, give a
reasonable opportunity to it to show cause against the proposed action.
(2) On and from the said date of dissolution,––
(a) all properties and funds, which immediately before the said date
were in the possession of the Board for the purposes of this Act,
shall vest in the Government ;
(b) all members shall vacate office as members of the Board ; and
(c) all rights, obligations and liabilities, (including any liabilities under
any contract) of the Board shall become the rights, obligations and
liabilities of the Government :
Provided  that the  rights, obligations and liabilities of the
Government under this clause shall be only so far as they relate to the
period after 1st April, 1971.
(3) Any notification issued under sub-section (1) shall not be questioned
in any Civil Court.]
37. Recovery of arrears.––If any amount due to the Board in accordance
with the terms of a contract or otherwise or any sum payable in connection
therewith has not been paid, the Board may,without prejudice to any other
remedy provided by law, recover such amount or sum as arrears of land revenue.
38. Power to write off losses.––The Board shall be competent to write off
losses up to rupees five hundred in individual cases and not exceeding rupees
five thousand in the aggregate in any financial year  in cases falling under any
or all of the following categories :––
* Now Official Gazette.
90 KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1965
(a) loss of irrecoverable value of stores or of public money due to
theft, fraud or such other causes ;
(b) loss of irrecoverable advance other than loans ; and
(c) deficiency and depreciation in the value of stores.
39. Repeal and saving.––(1) The Jammu and Kashmir Khadi  and Village
Industries Board Ordinance, 1965 (II of 1965) is hereby repealed.
(2) Notwithstanding such repeal anything done or any action taken
(including any appointment made or Board established) under the said
Ordinance shall be deemed to have been done or taken under this Act.
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