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The KARNATAKA (ABOLITION OF CASH GRANTS) ACT, 1967

Karnataka · state statute
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THE KARNATAKA (ABOLITION OF CASH GRANTS) ACT, 1967 
ARRANGEMENT OF SECTIONS 
Sections : 
 1. Short Title, extent and commencement. 
 2. Definitions. 
 3. Application of Act. 
 4. Abolition of certain grants and payment of compensation therefor. 
 5. Power to make rules. 
 6. Disposal of pending matters. 
 7. Repeal. 
  SCHEDULE. 
* * * * 
STATEMENT OF OBJECTS AND REASONS 
 Act 15 of 1967.-  Under section 3 of the Hyderabad Abolit ion of Cash Grants  Act, 1952, all cash 
grants specified in Part A of the Schedule to that Act were discontinued with effect from 1st April 
1952, and the cash grants specified in Part C of that Schedule were discontinued from the 1st July 
1954. The validity of this Act was questioned  before the High Court of Hyderabad and the High Court 
held that the abolition of cash grants without payment of comp ensation was illegal and that the 
applicants were entitled to "rusums" discontinued u nder  section 3 of that Act. The Government of 
Hyderabad appealed to the Supreme Court against t he orders of the High Court, but the appeal was 
subsequently withdrawn by the Government of Andhra Pradesh. In order to provide for the abolition of 
the cash grants, and payment of compensation for su ch abolition, the Andhra Pradesh (Abolition of 
Cash Grants) Act, 1959 was passed by the Andhr a Pradesh Legislature. The Government of 
Maharastra is also undertaking legislation for the abolition of the cash grants and payment of 
compensation .It is considered ne cessary to undertake legislation in order to abolish the system of 
cash grants in the Hyderabad, Karnataka Area. 
 Hence the Bill. 
 (Published in the Karnataka Gazette (Extraordi nary) Part IV- 2A, dated 26-7-1967, No. 155, at 
page 7. ) 
* * * * 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1[KARNATAKA]1 ACT No. 15 OF 1967 
(First Published in the 1[Karnataka Gazette] 1  on the Twenty-first day of December, 1967) 
THE 1[KARNATAKA]1 (ABOLITION OF CASH GRANTS) ACT, 1967 
(Received the assent of the President on the Eleventh day of  
December, 1967) 
(As on ………..) 
 An act to discontinue certain classes of cash grants in the 1[Gulburga Area]1 of the 1[State 
of Karnataka]1. 
 W HEREAS it is expedient to discontinue certain classes of cash grants in the 1[Gulburga 
Area]1 of the 1[State of Karnataka]1 ; 
 B E it enacted by the 1[Karnataka]1 State Legislature in the Eighteenth Year of the Republic 
of India as follows :- 
1.  Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 01.11.1973. 
 1. Short title, extent and commencement .-  (1) This Act may be called the  
1[Karnataka]1 (Abolition of Cash Grants) Act, 1967. 
 (2) It extends to the 1[Gulburga Area]1 of the  1[State of Karnataka]1. 
(3) It shall come into force at once. 
1.  Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 01.11.1973. 
 2. Definitions.- In this Act, unless the context otherwise requires,- 
 (a) "Government" means the State Government ; 
 (b) "charitable institution" means any charitable establishment, with a specific location 
and known address which is dedicated to, or for the benefit of, or used as of right by, the 
public generally or any community or sect ion thereof, for any pious, charitable or 
philanthropic purpose ; 
 (c) "prescribed" means prescribed by rules made under this Act ; 
 (d) "religious institution" means any religious establishment (such as temple, shrine, 
mosque or the like) with a specific location and known address which is dedicated to, or 
used as of right by, the public generally or any community or section thereof, as a place of 
public religious worship. 
 3. Application of Act .-  (1) This Act shall apply to any cash grant specified in the 
Schedule other than those mentioned in sub-section (2). 
 (2) Nothing contained in this Act shall apply to any such cash grant given in the name, or 
for the support, of any religious or charitable institution or given to any person for the 
performance of any service or charity, such service or charity being of a public nature 
connected with any religious or charitable institution : 
 Provided that the payment of cash grant mentioned in this sub-section shall be made to 
the institution or to the person concerned only so long as the institution exists. 
 (3) For the removal of doubts, it is hereby declared that the provisions of section 5 of the 
Hyderabad Atiyat Enquiries Act, 1952 (Hyderabad Act X of 1952), as in force in the 
Hyderabad Area, shall apply to the cash grants continued by this Act as they apply to Atiyat 
grants under that Act. 
 (4) The Government may, by notification in the official Gazette, alter, add to or omit any 
of the entries in the Schedule. 
 4. Abolition  of  certain  grants and payment of compensation therefor.- (1) 
Notwithstanding anything contained in any law, custom, usage, sanad or decree or order of 
a court or other authority and subject to the provisions of sub-section (2) all cash grants 
specified in Part A of the Schedule which were payable or enforceable during the year 
commencing on the 1st April, 1952 or any su bsequent financial year, and all cash grants 
specified in part B and Part C of the Schedule which were payable or enforceable during the 
year commencing on the 1st day of April, 1954 or any subsequent financial year, shall be 
discontinued and cease to have effect,- 
  (a) in the case of cash grants specified in Part A of the Schedule - with effect from 
the 30th day of July, 1952 ; and 
  (b) in the case of cash grants specified in Part B and Part C of the Schedule-with 
effect from the 1st day of July, 1954. 
 (2) The grantee whose cash grant is abolished under sub-section (1) shall be paid 
compensation as follows :- 
 (i) in the case of a cash grant specified in Part A of the Schedule, a sum equivalent 
to four times the annual amount payable to the grantee ; 
 (ii) in the case of a cash grant specified in Part B of the Schedule,  a sum  equivalent 
to six times the annual amount payable to the grantee ; and 
 (iii) in the case of a cash grant specified in Part C of the Schedule, a sum equivalent 
to four times the annual amount payable to the grantee : 
Provided that in respect of each of the cases specified in column (1) of the Table below, 
the cash grant specified in Part C shall be continued subject to the conditions specified in 
each case during the period mentioned in column (2), namely :- 
TABLE 
    (1)      (2) 
 (1) Where the age of the grantee,  Till the date of the death of the  
  whether male or female, was  grantee 
  not less than 60 years on the  
  1st day of April, 1954 
 (2) Where the age of the grantee   
  was less than 60 years on the  
  1st day of April, 1954 ,- 
  (i) in the case of a male or an   From the date of abolition till 
   unmarried woman, if the   the date of the death of the  
   grantee is incapable of earning  grantee. 
   a livelihood on account of being  
   blind, deaf, dumb and mute,  
   mentally deranged, crippled or  
   paralytic ; 
  (ii) in the case of a widow .  So long as she remains a    
        widow. 
 (3) Where the grantee is a minor,- 
  (i) in the case of a male if such  From the date of abolition till the 
   cash grant is his only source  date of attainment of 18 years. 
   of income     
  (ii) in the case of a female .  From the date of abolition    
        till the date of marriage or    
        the date of attainment of 18 
        years  whichever is earlier. 
 
 ( 3) Where the amount of cash grant received by a male minor before attainment of 18 
years of age, or by a female minor before such attainment or marriage, falls short of four 
times the annual amount of cash grant, the deficiency shall be made good to the male minor 
on his attaining 18 years of age, and to the female minor on her attaining 18 years of age or 
her marriage, whichever is earlier. 
 (4) Where a cash grant to which this Act applies is subject to the rendering of any 
service, the grantee shall, with effect from the date of discontinuation of  the grant, stand 
relieved of the liability to render that service. 
 (5) The compensation payable under sub-section (2) for the cash grants specified in Part 
A and Part C of the Schedule shall be paid to the grantee in such manner and in such 
installments as may be prescribed ; and the compensation payable for the cash grant 
specified in Part B of the Schedule shall be paid to him either in full or in annual installments 
not exceeding twelve. 
 5. Power to make rules .- (1) The Government may, by notification in the official 
Gazette, make rules to carry out all or any of the purposes of this Act. 
 (2) Every rule made under this section shall be laid as soon as may be after it is made, 
before each House of the State Legislature while it is in session for a total period of thirty 
days which may be comprised in one session or in two successive sessions and if before the 
expiry of the session in which it is so laid or the session immediately following, both Houses 
agree in making any modification in the rule or both houses agree that the rule should not be 
made, the rule shall thereafter have effect only in such modified form or be of no effect, as 
the case may be ; so however that any such  modification or annulment shall be without 
prejudice to the validity of anything previously done under that rule. 
 6. Disposal of pending matters .- All claims and all proceedings relating to cash grants 
pending on the date of commencement of this Act, before any authority shall, 
notwithstanding anything in any law, contract, decision or order of a court, be dealt with and 
disposed of in accordance with the provisions of this Act. 
 7. Repeal .-  The Hyderabad (Abolition of Cash Grants) Act, 1952 (Hyderabad Act 
XXXIII of 1952), is hereby repealed. 
SCHEDULE 
(Part A) 
 Rusums payable to,- 
 (1) Sardesmukhs, 
 (2) Sardeshpandyas, 
 (3) Deshmuks, 
 (4) Deshapandyas, 
 (5) Dastbandars (including mirasi-dastbandars), 
    1[(6) Choudhari, 
(7)Shettigiri]1. 
 
1.  Inserted by Notification No. RD 26 INM 81 dt. 9.2.1988. 
 
(Part B) 
  Mansab Maviza Jagir including Jagir Pension,  
  Mansab Maviza (Qarza), 
  Mansab Maviza Arasi,  
  Mansab Maviza Abkari,  
  Mansab Maviza Sair, 
  Mansab Maviza Aslaha, Kutub, Dookan, Safai, 
  Mansab Imtiassi,  
  Mansab Nazam Mahwars, 
  Mahwarat Walajahi issued in lieu of Jagirs. 
(Part C) 
 Ordinary Mansaba, Riayeti, Khas and Mutaferiqa Muhwars, Mash, Youmia, Mamool, Saliyans, 
Customs Mukasas and Agrahara, Mahwarat Walajahi (oth er than those issued in lieu of Jagirs) Tahir 
Sarishtadari, Wiquai Nigari. 
• * * * 
NOTIFICATION 
Bangalore dated 9th February 1988 [No. RD 26 INM 81] 
 S.O. 654.- In exercise of the powers c onferred by sub-sect ion (4) of section 3 of the Karnataka 
(Abolition of Cash Grant) Act, 1967 (Karnataka Act 15  of 1967), the Government of Karnataka hereby 
makes the following amendment to (Part A) of the Schedule to the said Act, namely:- 
 After item (5) of (Part A) of the Schedule to the Karnataka (Abolition of Cash Grants) Act, 1967 
(Karnataka Act 15 of 1967) the following items shall be inserted, namely:- 
 "(6) Choudhari, 
 (7) Shettigiri," 
By Order and in the name of the Governor of Karnataka, 
 
D.K.Nagarathammani 
Under Secretary to Government, 
Revenue Department 
 (Published in the Karnataka Gazette (Extraordina ry) Part IV 2C(ii) as No 278 dated 28-4-1988.) 
* * * 
 

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