LexThe JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED)
Jharkhand · state statute
Open in Lexace · Ask the AI about this actJHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 1
The 1[Jharkhand ]Khadi and Village Industries Act, 1956 (Adopted)
[Bihar Act XIV of 1956]2
Chapter I 17. Sanction of programme.
Preliminary 18. Supplementary programme.
1. Short title, extent and commencement. Chapter V
2. Definitions. Finance, Accounts, Audit and Debts
Chapter II 19. Transfer of property.
Establishment, constitution and Dissolution
of Board 20. Expenditure, etc., till the Board is established
3. Establishment of the Board. 21. Fund of Board.
4. Constitution of Board and term of office. 22. Application of fund and property.
5. Resignation by the president or a member. 23. Subventions and loans to Board.
6. Disqualification for appointment on the Board. 24. Budget.
7. Removal or suspension of a member of the Board. 25. Sanction of Budget.
8. Filling of casual Vacancies. 26. Supplementary Budget.
9. Validity of proceedings. 27. Annual Report.
10. Appointment of member of staff of Board and 28. Further report, statistics and returns.
Conditions of their service. 29. Accounts of Audit.
11. Constitution of the Advisory Council. Chapter VI
12. Conduct of business of the Board. Miscellaneous
13. Dissolution of the Board. 30. Direction by State Government.
Chapter III 31. Members, Officers and servants of Board to
Functions and Powers of the Board be public servants.
14. Functions of Board. 32. Protection of action taken under this act.
15. General powers of Board. 33. Power to make Rules.
Chapter IV 34. Regulations.
Preparation and submission of programmes 35. Savings.
16. Preparation and submission of annual Programme. THE SCHEDULE.
An Act to provide for organizing, developing and regulating Khadi and Village Industries in t he State of
1[Jharkhand] and to constitute a Board to carry out the said objects.
Be it enacted by the Legislature of the State of Bihar in the Seventh Year of the Republic of India as
follows:-
[Department of Industries No. 1181, dated the 14 th November, 2002 (Published in Jharkhand
Gazette, Extraordinary No. 341, dated November 22, 2002). – The State of Jharkhand has come into
independent existence with effect from 15 th November, 2000 under the provisions of Section 3 Bihar
Reorganization Act, 2000 (Act No. 30 of 2000), Part II. The provision laid down under Section 85 of Bihar
Reorganization Act, 2000, provides the legal rights to the State of Jharkhand in the matter of adoption of
any law and Act. In public interest as well as in the interest of the State (a) Bihar Khadi and Village
Industries Act, 1956; and (b) Bihar Khadi and Village Industries (Amendment) Act, 1981k is hereby adopted
as amended and mutatis mutandis to this notification.
Contents
1. Subs. For “Bihar” vide Adopting Notification dt. 14.11.2002.
2. Published in the Bihar Gazette, dated 1.8.1956
JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 2
Bihar Khadi and Village Industries Act, 1956
(2) Whereever “Jharkhand”, Jharkhand State”, “Government of Bihar” or “Ranchi” words is being
found in the above said Act i.e. (1) Bihar Khadi and Village Industries Act, 1956, (2) Bihar Khadi
and Village Industries (Amendment) Act, 1981 the word “Jharkhand”, “Jharkhand State”,
Government of Jharkhand” or “Ranchi” should be substituted respectively in those each places.
(3) The functioning area of the said Act will prevail over the whole of the State of Jharkhand and
constituted under provisions laid down in Section 3 of Part II Bihar Reorganization Act, 2000.
(4) This will come into force from 15th November, 2000, with retrospect effect.
The adopt ion of the said Act shall come into force, notwithstanding anything contrary, this Act
should be read as amended and clarified after the publication of this notification.]
Chapter I
Preliminary
1. Short title, extent and commencement. -(1) This Act may be called the [Jharkhand] Khadi and
Village Industries Act, 1956.
(2.) It extends to the whole of the State of 1[Jharkhand].
(3). It shall come into force on such date as as the State Government may, by notification in the
Official Gazette, appoint.
2. Definition- In this Act, unless there is anything repugnant in the subject or context, -
(a) “Board” means the 1[Jharkhand] State Khadi and Village Industries Board established under
Section 3;
(b) “Chairman” means the Chairman of the Board appointed under Section 4 of the Act;
(c) “Chief Executive Officer” means the Chief Executive Officer of the Board appointed under
Section 4 of the Act;
(d) “Commission” means the Khadi and Village Industries Commission established under Section 4
of the Khadi and village Industries Commission Act, 1956 (61 of 1956);
(e) “Financial Adviser” means the Financial Adviser to the Board appointed under Section 4 of the
Act’
(f) “Khadi” means any cloth woven on handlooms in India form cotton, silk or woolen yarn
handspun in India , or form a mixture of any two or all of the yarns;
(g) “prescribed” means prescribed by rules made under this Act; and
(h) (i) “Village Industries” means all or any of the industries specified in the schedule of this
Act, and shall include such other industry as the State Gov ernment may, by notification in the
Official Gazette, specify in this behalf;
(ii) any other industry specified in the Schedule to the Khadi and Village Industries
Commission Act, 1956 (61 of 1956). ]
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Jharkhand Local Acts
[Ed.- Prior to Substitution by Act 11 of 1982, S. 2 read as follows:
“2. Definitions. – In this Act, unless there is anything repugnant in the subject or context, -
(a) “Board” means the Bihar Khadi and Village Industries Board established under Section 3;
(b) “Khadi” means clo th woven on handlooms in India form cotton, silk or woolen yarn handspun in
India, or from a mixture of any two or all of such yarns;
(c) “prescribed” means prescribed by Rules made under this Act, and
(d) “village industry” means any of the industries specified in the Schedule to this Act, and shall include
such other industry as the State Government may, by notification in the Official Gazette, specify in
this behalf in consultation with the Board.:]
Chapter II
Establishment, Constitution and Dissolution of the Board
3. Establishment of the Board. – 1[(1) As soon as may be after the coming into force of this
Act, there shall be established, for the purpose of this Act by the State Government of
Board to be Called the 2[Jharkhand State] Khadi and Village Industries Board.]
(2) The Board shall be a body corporate and shall have perpetual succession and a
common seal and shall by the said name sue and be sued.
[Ed.- Prior to Substitution by Act 11 of 1982, sub-section (1) of S. 3 read as follows:
“(1) As soon as may be after the coming into force of this Act, there shall be established, for the purpose
of this Act by the State Government of Board to be Called the 2[Jharkhand State] Khadi and Village
Industries Board.]
4. Constitution of the Board and terms of Office. – (1) The Board shall consist of not more
than eleven members appointed by the State Government among whom the Chief
Executive Officer Shall be an ex-officio member besides three other official members.
(2) The State government shall nominate one of the non -official members to be the
Chairman of the Board.
(3) The State Government Shall appoint an officer of the State Government to be the
Chief Executive Officer of the Board.
(4) The State Government shall appoint a person , not being a member of the Board,
to be the Financial Adviser to the Board.
(5) The Board may invite for discussion of any matter before it officers of the State
Government and experts specially qualified to advise on it:
Provided that any member so invited shall not be entitled to vote.
(6) The term of office of the non -official members of the Board shall be three years
from the date of publication of their names in the Official Gazette and shall
include any further period which may elapse between the expiration of the said
period of three years and date of publication in the Official Gazette of the names
of the members of the succeeding Board.
(7) The non-official members may be re-appointed.
(8) The non -official members of the Board shall be paid such allowances form the
funds of the Board as may be prescribed.
JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 4
Bihar Khadi and Village Industries Act, 1956
(9) The term of office and the terms and conditions of services of the Chief Executive
Officer of the Board shall be determined by the State Government.
(10) The term of Officer and the terms and conditions of the Financial Adviser to the Board
shall be such as may be prescribed.]
[Ed.- Prior to Substitution by Act 11 of 1982, S. 2 read as follows:
“4. Constitution of Bard and term of office – (1) The Board shall con sist of not less than three and
not more than five members appointed by the State Government, one of them being nominated by the
State Government to be the President thereof .
(2) The State Government in consultation with the Board, may appoint a person, who may or may
not be a member of the Board, to be the Secretary of the Board.
*[(2-A) The State Government Shall appoint a person not being a member of the Board, to be the
Financial Advisor and Chief Accounts Officer to the Board.] [*Sub -Section. (2 -A) added by act 2 of
1964.]
(3) The Board shall have power to co -opt for the discussion of any particular matters before it, any
officer of the State government of exper ts specially qualified to advise on the matter or having special
knowledge of local conditions in any area where the industry in question is situated:
Provided that any member so co-opted shall not be entitled to vote.
(4) The term of office of the President and other members of the Board shall be three years from
the date of publication of their names in the Official Gazette and shal l include any further period which
may elapse between the expiration of the said period of three years and the date for publication in the
official Gazette of the names of the members of the next succeeding Board.
(5) The President and other members shall be eligible for re-appointment.
(6) The non -official members of the Board shall be paid such allowances form the funds of the
Board as may be prescribed.
*[(7) The term of the office and the terms and conditions of service of the Financial Advisor and Chief
Accounts Officer to the Board shall be such as may be prescribed. [* Sub -Section, (7) added by Act 2 of
1964.]
5. Resignation by the Chairman or a non-official member.– The Chairman, or any other non -
official member of the Board may, at any time, resign his office by submitting his resignation to
the State Government.]
[Ed.- Prior to Substitution by Act 11 of 1982, S. 5 read as follows:
“5. Resignation by the President or a member. – The President, or any other member of the Board
may, at any time, resign his office by submitting his resignation to the State Government, but no such
resignation shall take effect until it is accepted by the State Government.”+
6. Disqualification for appointment on the Boar d. – A Person shall be disqualified for being
appointed, or for continuing, as a member of the Board, if he –
(a) Does not wear khadi; or
(b) Holds any office of profit under the Board; or
(c) Is of unsound mind or stands so declared by a competent Court; or
(d) is an undercharged insolvent or has applied for being adjudged an insolvent; or
(e) has been convicted of an offence, which involves, in the opinion of the State Government,
moral turpitude; or
(f) has directly or indirectly be himself, by his wife or son, or by any partne r, any share or
interest in any subsisting contract or employment with, by, or on behalf of, the Board; or
JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 5
Jharkhand Local Acts
(g) is a director or secretary or manager or other salaried officer of any incorporated company
or any co-operative society, which has any share or interest in any contract or employment
with, by or on behalf of, the Board:
Provided that a person shall not be disqualified under clauses (f) and (g) or be deemed to have
any share or interest in any contract or employment with , by or on behalf of the Board, by
reason only of –
(i) his, or of the incorporated company or of a co -operative society of which he is a director,
secretary, manager or other salaried officer, having a share or interest in any newspaper in
which any advertisement relating to any affairs of the Board is inserted, or
(ii) his being a share - holder of such a company or society, if he has disclosed to the State
government the nature and extent of the share held by him from time to time :
1[Provided further that the provisions of clauses (a) and (b) of this section shall not apply to an
official member of the Board.]
7. Removal of a member of the Board. – (1) The State Government may remove form office the
Chairman or any member if he -
(a) refuses to act, or
(b) has become incapable of acting, or
(c) has abused his position in the Board so as to render his continuance on the Board detrimental
to its interest, or
(d) fails without sufficient reason, to attend three consecutive meeting of the Board, or
(e) ceases to reside in the State of 3[Jharkhand] or
(f) has since his appointment incurred any of the disqualifications specified in section 6, or
(g) is considered otherwise unsuitable to continue on the Board.
(2) Any action taken under the section shall not be called in question in any court.
(3) A member who has been removed under clause (e) of (f) of sub -section (1) shall not be eligible
for re-appointment on the Board as member or in any other capacity.]
[Ed.- Prior to Substitution by Act 11 of 1982, S. 7 read as follows:
*7. Removal or suspension of a member of the Board. – (1) The State Government may, after such
inquiry as may be necessary, remove form office the Chairman or any member if he -
(a) refuses to act, or
(b) has become incapable of acting, or
(c) has abused his position in the Board so as to render his continuance on the Board detrimental
to its interest, or
(d) fails without sufficient reason, to attend three consecutive meeting of the Board, or
JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 6
Bihar Khadi and Village Industries Act, 1956
(e) ceases to reside in the State of Bihar; or
(f) has since his appointment incurred any of the disqualifications specified in Section 6; or
(g) is otherwise unsuitable to continue on the Board.
(2) No order of removal under sub-section (1) shall be made, unless the member concerne d
has been given an opportunity to submit his explanation to State Government:
Provided that a member may be suspended by the State Government pending an
inquiry against him.
(3) A member who has been removed under clause (c) of (f) of sub -section (1) s hall not be
eligible for appointment to the Board as member or in any other capacity.”+
8. Filling of casual vacancies.- If any of the non-official members of the Board is unable, by
reason of his death, resignation, removal or otherwise, to complete his full term of
office, the vacancy so caused shall be filled by the appointment of another person and
such person shall remain member for the unexpired portion of the term for which th e
member, in whose place such person as appointed, would otherwise have continued in
office.
[Ed.- Prior to Substitution by Act 11 of 1982, S. 8 read as follows:
“8. Filling of casual vacancies.- If any the President or any other member of the Board in unable,by
reason of his death, resignation, removal or otherwise, to complete his full term of office, the vacancy so
caused shall be filled by the appointment of another person and such person shall fi ll such vacancy for
the unexpired portion of the term for which the President or the member, as the case may be, in whose
place such person is appointed would otherwise have continued in office.”+
9. Validity of Proceedings. - No act or proceedings of th e Board Shall be deemed to be
invalid only b y reason the existence of a vacancy in the Board or any defect or
irregularity in the appointment of member or the constitution of the Board.
10. Appointment of members of staff of B oard and conditions of their service. -(1) The
Board may subject to the approval of the State Government, appoint such number of
officers and servants as it may consider necessary.
(2) 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 made by the
Board.
11. Constitution of the Advisory Council. - (1) To advice and assist the Board in the
discharge of the functions under this Act, the State Government may, by notification in
the Official Gazette, constitute an Advisory Council to be called the 2[Jharkhand]Khadi
and Village Industries Advisory Council consisting of the Chairman and besides the
members of the Board, such number of other members, not exceeding twenty -one as
are, in the opinion of the State Government, interested in the development of Khadi and
Village Industries.
(2) The Chairman of the Board Shall be the Chairman of the Advisory Council.
(3) The terms of office of the other members of the Advisory Council Shall be three
years form the date of publication of their names in the Official Gazette.
(4) The State Government may if it thinks expedient, dissolve at any time the Advisory
Council or accept the resignation of any member of the Advisory Council or direct that
any person shall cease to be a member there of and any such action of the State
Government shall not be questioned in any court of law.
JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 7
(5) The business of the Advisory Council Shall be conducted in such manner as may be
prescribed.
(6) The non-official members of the Advisory Council shall be paid such allowance from the
funds of the Board as may be prescribed.]
[Ed.- Prior to Substitution by Act 11 of 1982, S. 11 read as follows:
“11. Constitution of the Advisory Council. - (1) To Advise and assist the Board in the discharge of its
functions under this Act, the State Government may, by notification in the Official Gazette, constitute
an Advisory Council to the Bihar Khadi and Vill age Industries Advisory Council, consisting of a Chairman
and such number of other members, not exceeding fourteen, as are, in the opinion of the State
Government, interested in the development of Khadi and Village industries:
Provided that the President of the Board may also be the Chairman of the Advisory
Council.
(2) The term of office of the Chairman and other members of the Advisory Council shall be
three years form the date of the publication of their names in the Official Gazette:
Provided that the State Government may, if it thinks expedient, dissolve, at any time,
the Advisory Council or accept the resignation of any member of the Advisory Council or direct
that any person shall cease to be a member thereof; and an y such action of the State
Government shall not be questioned in any Court.
(3) The business of the Advisory Council shall be conducted in such manner as may be
prescribed.
(4) The non -official members of the Advisory Council shall be paid such allowan ces from the
funds of the Board as may be prescribed.”+
12. Conduct of business of the Board. -1[(1) The Board shall have its Head Office at 2[Ranchi] and
subordinate offices at such other places as the State Government may be notification
determine.
(2) (i) The Board shall meet at such time and place and every meeting of the Board shall be
summoned in such manner as may be determined by regulations made by the Board:
Provided that the Chairman whenever he thinks fit may call special meetings.
(ii) Ev ery meeting of the Board and its committees shall be presided over by the
Chairman and in his absence the members present shall elect one of their members to preside
at the meeting.]
(3) All question at any meeting shall be decided by a majority of the members present and
voting and, in case of an equality of votes, the person presiding shall have and exercise an
second of casting vote.
(4) The minutes of the proceedings of every meeting shall be recorded in a book to be provided
for the purpose.
(5) A copy of the minutes of the proceedings of every meeting shall be forth with forwarded to
the State Government or to such authority as the State Government may direct.
[Ed.- Prior to Substitution by Act 11 of 1982, sub-secs. (1) and (2) of S. 8 read as follows:
*“(1) The Board shall have an office at Patna or at such other place as the State Government
may, in consultation with the Board, by notification, determine and shall meet at such time and
place; and every meeting of the Board shall be summo ned in such manner, as may be
determined by Regulations made be the Board:
JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 8
Bihar Khadi and Village Industries Act, 1956
Provided that the President may, whenever he thinks fit, can call special meetings.”+
*“(2) Every meeting shall be presided over by the President, and in his absence the members
present shall elect one of their member to preside at the meeting.”+
13. Dissolution of the Board.-1[(1) If at any time the State Government is satisfied that-
(a) the Board has, without reasonable cau se or excuse, made default in the performance of
its duties or the discharge of its functions, imposed by or under this Act, or exceeded or
abused its powers, or
(b) circumstances have so arisen that the Board is rendered unable or may be rendered
unable to discharge its functions under this Act, or
(c) it is otherwise expedient or necessary to dissolve the Board, the State Government may,
by notification in the Official Gazette, dissolve the Board and declare that the duties,
powers and functions of the Board shall, during the period of dissolution, be performed,
exercised and discharged by such person or authority, as may be specified in the
notification.]
1[(2) The State Government may reconstitute the Board in accordance with the
provisions of Section 4.]
(3) The State Government may make such incidental and consequential provisions as
may appear to be necessary for giving effect to the purposes of this Section.
(4) Any notification or order made by the State Government under this Section shall not
be questioned in any Court.
[Ed.- Prior to Substitution by Act 11 of 1982, sub -secs. (1) and (2) of S. 13 read as
follows:
“(1) If at any time the State Government is satisfied that-
(a) The Board has, without reasonable cause or excuse, made default in the
performance of its duties of the discharge of its functions, imposed by or under this
Act, or exceeded or abused its powers, or
(b) circumstances have so arisen that the Board is rendered unable or may be rendered
unable to discharge its functions under this Act, or
(c) (c) it is otherwise expedient or necessary to dissolve the Board, the State
Government may, by notification in the Official Gazette, dissolve the Board and
declare that the duties, powers and functions of the Board shall, during the period of
dissolution, be performed, exercised and discharged by such person or authority, as
may be specified in the notification.
(2) The State Government may reconstitute the B oard in accordance with the provisions
of Section 4.]
13 A.Effect of the dissolution of the Board. – On the Board ceasing to exist by dissolution
under Section 13;
(i) all properties and funds which immediately before the said date were in the possessi on
of the Board for the purpose of this Shall vest in the State Government;
(ii) all members shall vacate office as members of the Board; and
(iii) all rights, obligations and liabilities (including any liability under any contract) of the
Board shall become the right, obligations and liabilities of the State Government.]
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Jharkhand Local Acts
Chapter III
Functions and powers of the Board
14. Functions of Board. - (1) It shall be the duty of the Board to organize, develop and
regulate khadi and village industries and perform such other functions as the State
Government may prescribe form time to time.
(2) Without prejudice to the generality of the provisions of sub -section (1), the Board
shall, in particular, discharge and p erform all or any of the following duties and
functions, namely:-
(a) to start, encourage, assist and carry on khadi and village industries;
1[(b) to help person or associations of persons by providing them with work in their
homes and to give them fin ancial assistance in the shape of loans and grants for any of
the purposes of this Act on such terms and conditions as may from time to time be laid
down-
(i) by the Commission in case of loans and grants given by the Board out of the
funds received form the commission;
(ii) By the State Government in case of loans and grants given by the Board out of
the funds received form the State Government or otherwise and such terms and
conditions may also provide for the recovery of the loans together with interes ts
thereon, if any, or the grants;
(c) to encourage the establishment of co -operative societies for khadi and village
industries;
(d) to conduct training centers and to train people to such centers or at other centers
outside 2[Jharkhand] with a view to eq uipping them with the necessary knowledge for
starting or carrying on khadi or village industries;
(e) to arrange for the supply of raw materials, tools and implements and for the sale of the
finished products of such industries;
(f) to arrange for publicity of , and popularizing, finished products of such industries by
opening stores, shops, emporiums or exhibitions;
(g) to endeavor to educate public opinion and to impress upon the public the advantages of
patronizing the products of khadi and village industries;
(h) to seek and obtain the advice and guidance of experts in such industries;
(i) to undertake and encourage research work in connection with khadi and village
industries;
(j) to maintain or assist in the maintenance of institutions for th e development of khadi or
village industries; and
(k) to discharge such other duties and to perform such other functions as the State
Government may direct for the purpose of carrying out the objects of this Act.
(3) The Board shall ordinarily consult the Advisory Council constituted under Section 11
with respect to the discharge of its functions under this Act.
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Bihar Khadi and Village Industries Act, 1956
[Ed.- Prior to Substitution by Act 11 of 1982, sub-secs. (2)(b) of S. 14 read as follows:
"(b) to help the people by providing them with work in their homes and to give them
monetary help;”+
Comments & Case-Law
Persons appointed by the BRKGB under diffe rent “KhadiBhawans” for discharging its
functions u/s 14 are employees of the Board. Although funds are provided by the State on
requisition by the Board u/s 16 and 24, payment of salary and retrial benefits is responsibility
of the Board. It cannot delay payment of such legal dues on the ground of non -availability of
funds. Board was directed to send fresh requisition of additional funds and pay post retiral
dues on receipt of funds from the State Government. (Mohan Prasad Singh vs. State of Bihar,
2000(2) PJLJR 185) Tripti Narayan Singh vs. B.R.K.G.B. 2000(2) PLJR 185.
15. General powers of Board. - The Board shall, for the purposed of carrying out its
functions under this Act, have the following powers, namely:-
(i) to acquire and hold such movable and immovable property as it deems necessary and to
lease, sell or otherwise transfer any such property:
Provided that in the case of immovable property such power shall be exercised
with the previous sanction of the State Government;
(ii) to incur expendit ure and undertake any work in any area in the State for the farming
and execution 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 State Government; and
(iii) to enter into any contract for the purpose of this Act; and
(iv) to do all things necessary in the furtherance of the objects of the Act.
15A.Constitution of Standing Finance Committee. – (1) The Board may constitute form
amongst its members, a Standing committee consisting of the following members:
(i) The Chairman,
(ii) The Chief Executive Officer, and
(iii) Three members elected form amongst the members of the Board.
(2) The financial Adviser to the Board shall be permanent invitee to the Standing finance
Committee.
(3) The Standing Finance Committee shall exercise such powers and perform such functions
relating to the finances of the Board as may be delegated to it be the Board.
15B. General powers and functions of Chairman, Members, Chief Executive Off icer and
Financial Adviser. – (1) Chairman – The Chairman shall be responsible for the proper
functioning of the Board and the implementation of its decisions and discharge of its duties
and functions under the Act and shall exercise such powers and discha rge functions as may be
prescribed.
JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 11
Jharkhand Local Acts
(2) Member – A member of the Board shall be entitled to take part in the meetings of the
Board, the Advisory Council and such Committees of the Board of which he is member.
(3) Chief Executive Officer – The Chief Executive Officer shall be the Chief executive of the
Board and shall work under overall supervision of the Chairman. He shall perform such
functions and shall exercise such powers as may be prescribed. He shall be respo nsible for
implementing the decisions of the Board and its Committees and shall exercise all
administrative powers in discharge of such responsibilities.
(4) Financial Adviser – The Financial Adviser shall advise the Board on matters of policy
relating to receipts and expenditure and shall exercise such powers and discharge such duties
and functions as may be prescribed.
Chapter IV
Preparation and Submission of Programmee
16. Preparation and submission of annual programme – (1) In each year, on such
date as may be prescribed the Board shall prepare and forward in prescribed form
to the State Government -
(a) aprogramme for the promotion and development of khadi and village industries; and
(b) a schedule of the staff of officers and servants already employed and to be employed in
the next year.
(2) The programme shall contain –
(a) particulars of the scheme which the Board proposed to execute during the next year;
(b) particulars of any work which the Board proposed to execute or any undertak ing which
it proposed to organize during the next year for the purposes of carrying out its
functions under this Act; and
(c) such other particulars as may be prescribed.
17. Sanction of programme – The State Government may sanction the programme and the
schedule of staff of officers and servants with such modifications as it deems fit.
18. Supplementary programme – The Board may prepare and forward as supplementary
programme for the sanction of the State Government in such form and before such date
as may be prescribed and the provisions of Section 17 shall apply to such supplementary
programme.
Chapter V
Finance, Accounts, Audit and Debts
19. Transfer of property – The State Government may transfer to the Board, Buildings, lands
or any other property, movable or immovable, for the use of and management by the
Board on such conditions as the State Government may impose for the purposes of this Act.
20. Expenditure, etc . till the Board is established – All debts or expenditure incurred, all
contracts, entered into, and all matters and things engaged to be done by with or for the
State Government, in connection with the purposes of this Act before and up to the date of
the establishment of Board, shall be deemed to have been incurred entered i nto or
engaged to be done by with or for the Board and in all
JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 12
Bihar Khadi and Village Industries Act, 1956
Suits and other legal proceedings instituted by or against the State Government, the
Board shall be deemed to be substituted for the State Government.
21. Fund of Board – (1) The Board shall have two separate funds to be called the “Khadi
Fund” and “Village” Industries Fund” and all grants and advances made to the funds, form time
to time, be the State Government or by the Commission for the purpose of development of
khadi or the development of village industries and all other receipts of the Board shall be
credited to the “Khadi Fund” or the “Village Industries Fund” as the case may be and all
payments by the Board for or in respect of “Khadi or Village Industries” shall be made from the
appropriate fund.
(2) The Board may accept grants, subventions, donations and gifts and receive loans from
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 money belonging to the Board shall be deposited in such manner as the State
Government may, by special or general order direct.
(4) The accounts of the Board shall be operated upon by such officers of the Board jointly or
individually as it may authorize.
[Ed.- Prior to Substitution by Act 11 of 1982, sub-secs. (1) and (4) of S. 21 read as follows:
(1) The Board shall have two separate funds to be called the “Khadi Fund” and the “Village
Industries Fund” a nd all grants and advances made to the funds from time to time by the
State Government or by the Commission for the purpose of development of khadi or the
development of village industries and all other receipts of the Board shall be credited to the
“Khadi Fund” or the “Village Industries Fund” as the case may be and all payments by the
Board for or in respect of “Khadi or Village Industries” shall be made from the appropriate
fund.
(2) The accounts of the Board shall be operated upon by the Secretary and such officers of the
Board jointly or individually as it may authorize.
22. Application of fund and property – All property fund and other assets of the Board shall
be held and applied by it subject to the provisions of and for the purposed of this Act.
23. Subventions and loans to Board – (1) The State Government may from time to time
make subventions and grants and advance loans to the Board for the purposes of this
Act on such terms and conditions as the State Government may determine in each case.
(2) The Board may with the previous sanction of the State Government and subject
to the provisions of this Act and such conditions as the State Government may
determine borrow any sum required for the proposes of this act.
24. Budget – The Board shall by such date in each year as may be prescribed prepare and
submit to the State Government for approval two separate budgets in the prescribed
form for the next financial year, to be called the Khadi Budget and the Village Industries
Budget, showing the estimat ed receipts and expenditure in respect of khadi and Village
industries, respectively, during that financial year.
25. Sanction of Budget – (1) The State Government may sanction the Budget submitted to it
with such modifications as it thinks fit.
(2) Subject to the provisions of sub -sections (3) and (4) no sum shall be expended by or
on behalf of the Board unless the expenditure is covered by a specific provision in the
budgets approved by the State Government.
JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 13
Jharkhand Local Acts
(3) The Board may within the respective limits of the Khadi Budget and the Village
Industries Budget, sanction any re -appropriation form one head of expenditure to another or
form a provision made for one scheme to that in respect of another, but in no case shall a re -
appropriation of fund be made from the Khadi Budget to the Village Industries Budget or from
the Village Industries Budget to the Khadi Budget except with the previous approval of the
State Government.
Provided that no re -appropriation from the head loan to any other head of expenditure
and vice versa in either budget shall be sanctioned by the Board, except with the previous
approval of the State Government.
(4) The Board may, within such limits and subject to such conditions as may be pre scribed,
incur expenditure in excess of the limit provided in the budgets approved by the State
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 State Government is not
exceeded.
26. Supplementary Budget – The Board may submit a supplementary budget for the
sanction of the State Government in such form and before such date as the State Government
may prescribe and the provisions of Sections 24 and 25 shall apply to such supplementary
Budget.
27. Annual Report – (1) The Board shall prepare and forward to the State Government in
such manner as may be prescribed, an annual report within three months of the end of the
financial year, giving a complete account of its activities during the previous financial year.
(2) The report received by the State Government under sub -section (1) shall be laid before
both the Houses of the State Legislature as soon as may be after it is received by the State
Government.
[Ed.- Prior to Substitution by Act 11 of 1982, sub-secs. (1) and (4) of S. 21 read as follows:
“27. Annual Report – The Board shall prepare and forward to the State Government in such manner
as may be prescribed, an annual report within three months o f the end of the financial year, giving a
complete account of its activities during the previous financial year.
28. Further report, statistics and returns – The Board shall before such date and at such
intervals and in such manner as may be prescribed, submit to the State Government a report
on such matters and such statistics and such returns as may be prescribed.
29. Accounts and Audit – The Accounts of the Board shall be maintained and an annual
statement of accounts shall be prepared in such manner as may be prescribed. Such accounts
shall be audited by an Auditor approved by the State Government.
Chapter VI
Miscellaneous
30. Direction by the State Government – In the Discharge of its functions, the Board shall
be guided by such directions and instructions as may be given to it, form time to time by the
State Government.
JHARKHAND KHADI AND VILLAGE INDUSTRIES ACT, 1956 (ADOPTED) 14
Bihar Khadi and Village Industries Act, 1956
[Ed.- Prior to Substitution by Act 11 of 1982, sub-secs. of S. 30 read as follows:
“30. Direction by the State Government – (1) In the Discharge of its functions, the Board shall
be guided by such directions and instructions as may be given to it, form time to time by the
State Government.
(2) If any question arises between the State Gove rnment and the Board as to whether or
not a question is a question of policy, the State Government shall be final.
[Ed.- The State of Jharkhand having only one House, this may be read accordingly.
Comments & Case-Law
The primary or essential function of the Bihar State KhadiGramodyog Board is
development of the khadi and village industries in Bihar. Therefore, it is with respect to this
function alone that the State Government can issue direction to the Board u/s 30 of the Act. It
was held that appointment of the employees cannot but be an ancillary function which the
Board is required to perform in order to achieve its avowed object of development of the Khadi
and Village industries, and not the essential and pri mary function. Therefore Government
cannot interfere in appointments made by the Board. Establishment Committee is sole
authority in matter of appointment, promotion and disciplinary actions in respect of class – III
& IV employees. Nand Kishore Thakur vs. State of Bihar, 1999(2) PLJR 380.
31. Members, Officers and Servants of the Board to be public servants – Members,
Officers and Servants of the Board shall be deemed, when acting or purporting 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 (XLV of 1860).
32. Protection of Action taken under this Act – No suit, prosecution or other legal
proceeding shall lie against any person for anything which is in good fa ith done or purported to
be done under this Act.
1[32A. Sums due to the Board recoverable as Public demands – (1) All loans and grant under
this Act, all interests if any, chargeable thereon all misapplied, misutilised or unutilized grants
made under a ny agreement expressed or implied or otherwise, and cost if any, incurred in
making or recovering the same, whether before or after the commencement of the Bihar Khadi
and Village Industries (Amendment) Ordinance, 1966 (Bihar Ordinance No. 10 of 1966) sh all
without prejudice to any other remedy provided by law, be recoverable under the Bihar and
Orissa Public Demands Recovery Act, 1914 (Bihar & Orissa ActExcerpt shown. Open the full act in Lexace.