LexThe Maharashtra Khadi and Village Industries Act.
Maharashtra · state statute
Open in Lexace · Ask the AI about this act1960 : XIX] 1
THE MAHARASHTRA KHADI AND VILLAGE INDUSTRIES ACT
[Text as on 4th September 2025]
_____________
CONTENTS
PREAMBLE.
SECTIONS.
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
ESTABLISHMENT, INCORPORATION AND CONSTITUTION OF THE BOARD
3. Establishment and incorporation of Board.
4. Constitution of Board.
4A. Term of office and terms and conditions of service of member.
4B. Resignation of office by member.
5. Vacancy to be filled as early as possible.
6. Proceedings presumed to be good and valid.
6A. Temporary association of persons with Board for particular purpose.
6B. Constitution of Council.
7. Chief Executive Officer, Financial Adviser and other officers and servants of Board; and
conditions of their service.
7A. Constitution of District Committees and their powers and functions.
8. Appointment of Committees.
9. Meetings of Boards and Council.
10. Power to make contracts.
CHAPTER III
FUNCTIONS AND POWERS OF THE BOARD
11. Functions of Board.
12. General Powers of Board.
CHAPTER IV
PREPARATION AND SUBMISSION OF PROGRAMMES
13. Preparation and submission of annual programme.
2 The Maharashtra Khadi and Village Industries Act [1960 : XIX
14. Sanction of programme.
15. Supplementary programmes.
CHAPTER V
FINANCES, ACCOUNTS, AUDIT AND DEBTS
16. Transfer of property.
17. Funds of Board.
17A. Reserve Fund of Board.
18. Application of fund and property.
19. Subventions and loans to Board.
19A. Expenditure for research and experiments.
20. Budget.
21. Sanction of Budget.
22. Supplementary Budget.
23. Annual report.
24. Further report, statistics and returns.
25. Accounts and audit.
CHAPTER VI
MISCELLANEOUS
26. Direction by State Government.
26A. Recovery of moneys due to Board as arrears of land revenue.
26B. Power of Board to write off loans.
27. Members of Board and officers and servants of Board to be public servants.
28. Protection of action taken under this Act.
29. Rules.
30. Regulations.
31. Dissolution of Board.
31A. Transfer of rights and liabilities of State Government to Board.
32. Repeal and saving.
33. Dissolution of existing Board and transfer of its assets and liabilities to the new Board.
34. Power to remove difficulties.
35. Removal of doubt.
36. Repeal of Bom. Ord. No. III of 1960.
1960 : XIX] The Maharashtra Khadi and Village Industries Act 3
4 The Maharashtra Khadi and Village Industries Act [1960 : XIX
LIST OF AMENDMENT ACTS
1. Adapted and modified by the Khadi and Village Industries Board (Bombay, Pune and East
Khandesh).
2. Amended by Mah. 34 of 1962
3. Amended by Mah. 05 of 1964
4. Amended by Mah. 28 of 1965
5. Amended by Mah. 37 of 1975 (1-4-1976)1
6. Amended by Mah. 55 of 1977 (1-10-1976)2
7. Amended by Mah. 24 of 2012 (22-8-2012)3
8. Amended by Mah. 21 of 2013
1 This indicates the date of commencement of Act.
2 This indicates the date of commencement of Act.
3 This indicates the date of commencement of Act.
1960 : XIX] The Maharashtra Khadi and Village Industries Act 5
ACT NO. XIX OF 19601
[THE MAHARASHTRA KHADI AND VILLAGE INDUSTRIES ACT.]
[This Act received the assent of the President on 8th April 1960; assent was first published in the
Maharashtra Government Gazette, Part IV, on the 11th April 1960.]
(Re-constitution) Order, 19612.
An Act to provide for the encouragement, organisation, development and
regulation of Khadi and Village Industries in the State of Bombay
and to constitute 3[a Board] to carry out the said objects.
WHEREAS it is expedient to provide for the encouragement, organisation, development and
regulation of Khadi and Village Industries in the State of Bombay and to constitute 4[a Board] to carry
out the said objects 5[and to provide for matters connected therewith]; It is hereby enacted in the
Eleventh Year of the Republic of India as follows :—
CHAPTER I
PRELIMINARY
1. Short title , extent and commencement. — (1) This Act may be called 6[the Maharashtra
Khadi and Village Industries Act].
7[(2) It extends to the whole of the State of Maharashtra.]
(3) It shall come into force at once.
2. Definition.— In this Act, unless the context otherwise requires,—
8[(a) “Board” means the Maharashtra State Khadi and Village Industries Board constituted
under this Act;]
9[(aa) “Chairman” means the Chairman of the Board;
(ab) “Commission” means the Khadi and Village Industries Commission establis hed under
the Khadi and Village Industries Commission Act, 1956 (LXI of 1956);
(ac) “Council” means the Maharashtra State Khadi and Village Industries Council
constituted under this Act;]
10[(ad) “cottage industry” means an industry, which is a cottage industry as defined in clause
(b) of section 2 of the Maharashtra State-aid to Industries Act, 1960 (Mah. XVII of 1960);
(ae) “District Committee” means a Committee constituted for a District under
section 7A;]
(b) “Khadi” means any cloth woven on handloo ms in India from cotton, silk or woollen
yarn handspun in India or from a mixture of any two or all of su ch yarns and
certified as Khadi 11[by the Commission; and includes ready -made garments made out of such
cloth;]
1 For Statement of Objects and Reasons, see Bombay Government Gazette, 1960, Part V, p. 32-33.
2 This order was publish in Government of India, Ministry of Home Affairs, Notification No. G. S. O. (F. 8/14/60 -SR(R).
24), dated 11th December 1961.
3 These words were substituted for the words “one or more Boards” by Mah. 28 of 1965, s. 2 and s. 3(a).
4 These words were substituted for the words “one or more Boards” by Mah. 28 of 1965, s. 2 and s. 3(a).
5 These words were inserted, by Mah. 28 of 1965, s. 3(b).
6 The short tit le was amended for “the Bombay Khadi and V illage Industries Act, 196 0” by Mah. 24 of 2012, s. 2,
Schedule, entry 84, w.e.f. 1-5-1960.
7 Sub-section ( 2) was substituted by the Khadi and Village Industries Board (Bombay, Pune and East -Khandesh)
(Re-constitution) Order, 1961.
8 Clause (a) was substituted by Mah. 28 of 1965, s. 4(a).
9 These clauses were inserted by Mah. 28 of 1965, s. 4(b).
10 Clause (ad) and (ae) were inserted by Mah. 55 of 1977, s. 2(a).
11 These word were substitute for the words and figures “by the Khadi and Village Industries Commission established
under the Khadi and Village Industries Commission Act, 1956” by Mah. 28 of 1965, s. 4(c).
6 The Maharashtra Khadi and Village Industries Act [1960 : XIX
1[(c) “member” means a member of the Bo ard and includes the Chairman, the Vice -
Chairman and a member-secretary or member-secretaries of the Board;
(ca) “member-secretary” means member-secretary of the Board;]
(d) “prescribed” means prescribed by rules made or deemed to be made under this Act;
(e) “regulation” means regulations made or deemed to be made under this Act;
2[(ea) “small scale industry” means an industry, which is a small scale industry as defined in
clause (e) of section 2 of the Maharashtra State-aid to Industries Act, 1960; Mah. (XVII of 1960)]
3[(ee) “Vice-Chairman” means the Vice-Chairman of the Board;]
4[(f) “village industry” means—
(i) all or any of the industries specified in schedule to the Khadi and Village Industries
Commission Act, 1956 (LXI of 1956) , and includes a ny other industry deemed to be
specified in the said Schedule by reason of a notification issued under section 3 of that Act;
or
5[(ia) any cottage industry, small scale industry or handicraft industry; or]
(ii) any other industry, specified in this beha lf by the State Government by notification
in the Official Gazette, in consultation with the Commission and Board.]
CHAPTER II
ESTABLISHMENT, INCORPORATION AND CONSTITUTION OF THE BOARD 6* *
3. Establishment and incorpora tion of Board .— 7[(1) The State Go vernment may, by
notification in the Official Gazette, establish a Board for the whole State to be called the Maharashtra
State Khadi and Village Industries Board];
(2) 8[The Board] shall be a body corporate having perpetual succession and a common seal and
may sue and be sued in its corporate name and shall be competent to acquire, hold and dispose of
property both movable and immovable and to contract and do all things necessary for the purposes of
this Act.
4. Constitution of Board. — 9[(1) The Board shall consist of not less than five, and not more
than seven members as the State Government may appoint. The members shall be chosen from among
person who, in the opinion of the State Government, are qualified as having had experience and shown
capacity, in matters relating to the development of khadi and village industries, and shall hold office
during the pleasure of the State Government;
10[Provided that, out of the members so appointed at least one member shall be from amongst the
members of the Gram Sa bha or the Panchayat in the Scheduled Areas referred to in clause ( 1) of
article 244 of the Constitution of India.
Explanation.— For the Purpose of this proviso, the expressions “the Gram Sabha ” “the
Panchayat” shall have the same meaning respectively assigned to them in clauses (b) and (d) of article
243 of the Constitution of India.]
1 Clauses (c) and (ca) were substituted for clause (c) by Mah. 28 of 1965, s. 4(d).
2 Clause (ea) was inserted by Mah. 55 of 1977, s. 2(b).
3 Clause (ee) was inserted by Mah. 28 of 1965, s. 4(e).
4 Clause (f) was substituted by Mah. 28 of 1965, s. 4(f).
5 Sub-clause (ia) was inserted by Mah. 55 of 1977 s. 2(c).
6 The words “or Boards” were deleted by Mah. 28 of 1965, s. 5.
7 Sub-section (1) was substituted by Mah. 28 of 1965, s. 6(a).
8 These words were substituted for the words “Every Board” by Mah. 28 of 1965, s. 6(b).
9 Sections 4, 4A and 4B were substituted for the original section 4 by Mah. 28 of 1965, s. 7.
10 This proviso was added by Mah. 21 of 2013, s. 2.
1960 : XIX] The Maharashtra Khadi and Village Industries Act 7
(2) One of the members of the Board shall be appointed by the State Government as Chairman of
the Board and another as Vice -Chairman, and the Government shall also appoint on e or two of the
remaining members as it thinks fit as the member -secretary or member-secretaries of the Board. All or
any of the members may be either whole-time or part-time, as the State Government may direct.
(3) The Board shall have its office at such place or places in the State, as the State Government
may notify, to which all communications and notices shall be addressed.
4A. Term of office and terms and conditions of service of members. — (1) Subject to the
provisions of section 4, and sub -section (3) of this section, the term of office and terms and conditions
of service of members and the remuneration or allowances or both to be paid to them shall be such as
may be prescribed.
(2) Subject to the provisions of sub-section (3),—
(a) the Chairman s hall be entitled without payment of rent to the use of a residence in
Bombay throughout his term of office and for a period of fifteen days immediately thereafter, or
in lieu of such residence, a house allowance at the prescribed rate;
(b) no charge shall fall on the Chairman personally in respect of the maintenance of any
residence provided in this sub-section;
(c) the Board may from time to time for the use of the Chairman purchase and provide a
motor car or other suitable conveyance upon such condition s as regards its maintenance and
repairs as may be determined by rules made by the State Government in this behalf.
(3) Notwithstanding anything contained in this section or any rules made thereunder, a member of
the State Legislature while holding the office of Chairman or member of the Board shall not be entitled
to receive any facilities provided in sub -section ( 2), or any remuneration or allowances other than
travelling allowance, daily allowance or such other allowance which is paid to the holder of such office
for the purpose of meeting the personal expenditure incurred in attending the meeting of the Board, the
Council or any Committee of the Board, or in performing any other functions as the holder of such
office.
(4) The Chief Executive Officer, t he Financial Adviser and Chief Accounts Officer, and all other
officers and servants of the Board shall work under the superintendence and control of the Chairman.
4B. Resignation of by office member.— Any member of the Board may, at any time, resign his
office by writing under his hand addressed to the State Government.]
5. Vacancy to be filled as early as possible.— When 1[a member dies or resigns,] he shall cease
to be a member of the Board from the date of his death or the date of the acceptance of the resignation,
as the case may be, and any vacancy so occurring 2[or otherwise] shall be filled by the State
Government as early as practicable:
Provided that, during any such vacancy the continuing members may act as if no vacancy has
occurred.
6. Proceedings presumed to be good and valid.— No act or proceeding of 3[the Board] shall be
questioned or invalidated merely by reason of any vacancy in its membership on account of
resignation, death or otherwise, or by reason of any defect in the constitution thereof 4[or that the Board
did not consult the Council in respect of any matter.]
5[6A. Temporary association of persons with Board for particular purpose.— (1) The Board
may associate w ith itself in such manner and on such conditions and for such pu rposes as may be
1 These words were substituted for the words “ a member of a Board dies or resigns as provided in sect ion 4” by Mah. 28
of 1965, s. 8(a).
2 These words were added by Mah. 28 of 1965, s. 8(b).
3 These words were substituted for the words “a Board” by Mah. 28 of 1965, s. 9(1).
4 These words were added by Mah. 28 of 1965, s. 9.
5 Sections 6A and 6B were inserted by Mah. 28 of 1965, s. 10.
8 The Maharashtra Khadi and Village Industries Act [1960 : XIX
determined by regulations made under this Act, any persons whose assistance or advice it may desire
for the purpose of complying with any of the provisions of this Act.
(2) A person associated with it by 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 take part in the discussions of the Board relating to matters connected with any other
purpose.
(3) The State Government may, by order, depute one or more officers of the State Government to
attend any meeting of the Board, and to take part in the discussions of the Board, but such officers shall
not have the right to vote.
6B. Constitution of Council.— (1) For the purpose of assisting the Board in the discharge of its
functions under this Act, the State Government may, in consultation with the Board, by notification in
the Official Gazette , constitute a Council to be called the Maharashtra State Kha di and Village
Industries Council.
1[The Council shall consist of—
(a) the Chairman and other members of the Board,
(b) the Chairman of all District Committees, and
(c) such number of additional members (not exceeding four), as the State Government may
think fit,]
chosen from amongst persons who, in the opinion of the State Government, are qualified as
having had experience and an abiding interest in matters relating to the development of khadi and
village industries.
2[(1A) The Chairman of the Board shall be the ex-officio Chairman of the Council.]
(2) The Board shall ordinarily consult the Council in the discharge of its functions under this Act.
(3) The members of the Council 3[shall be paid such allowances as may be prescribed, and] shall
hold office during the pleasure of the State Government.]
4[7. Chief Executive Officer, Financial Adviser and other officers and servants of Boards;
and conditions of their service. — (1) The Board shall appoint a Chief Executive Officer to manage
the affairs of the Board.
(2) The Chief Executive Officer may be a Government servant whose services are placed at the
disposal of the Board by the State Government; and if he is a Government servant his remuneration,
allowances and other conditions of service shall be such as may be fixed by the State Government.
(3) The functions, duties and powers of the Chief Executive Officer shall be such as may be fixed
by the Board, with the previous approval of the State Government.
(4) The Board shall, with the previous appr oval of the State Government, also appoint a person
(not being a member) to be the Financial Adviser. The Financial Adviser shall also functions as the
Chief Accounts Officer of the Board.
(5) The term of office, the conditions of service and functions of the Financial Adviser shall be
such as may be prescribed.
(6) Subject to any rules as to creation of posts made in this behalf, the Board may create posts and
appoint such other officers and servants as it may consider necessary for the effic ient discharge of its
functions:
1 These words were substituted for the portion beginning with the words “The Council shall”, and ending with the w ords
“may think fit” by Mah.55 of 1977, s. 3(a).
2 Sub-section (1A) was inserted by Mah. 55 of 1977, s. 3(b).
3 These words were inserted by Mah. 37 of 1975, s. 4.
4 Section 7 was substituted by Mah. 28 of 1965, s. 11.
1960 : XIX] The Maharashtra Khadi and Village Industries Act 9
Provided that, the Board may delegate its powers in this behalf to the Chairman or other members
or officers of the Board.
(7) Subject to the provisions of sub -section (2) and sub-section (5), the remuneration, allowances
and other co nditions of service of the officers and servants of the Board shall be such as may be
determined by regulations.]
1[7A. Constitution of District Committees and their powers and functions. — (1) Subject to
any rules made in this behalf, the Board shall, for the purpose of securing a more effective impact of its
programmes in the r ural areas, constitute a Commit tee for each District in the State, to be called the
District Committee, consisting of the following members, namely :—
(a) A non-official to be appointed by the Board, with the approval of
the State Government, as Chairman.
... Chairman.
(b) A representative of the Zilla Parishad, who shall ordinarily be the
Chairman of its Social Welfare Committee.
… Member.
(c) The Chairman of the District Central Co-operative Bank. … Member.
(d) A representative of the Lead Bank of the District. … Member.
(e) Three non-officials, at least one of whom shall belong to the
Scheduled Castes, Scheduled Tribes, Vimukta Jatis or Nomadic
Tribes and one of whom shall be a woman.
… Member.
(f) The District Deputy Registrar of Co-operative Societies. … Member.
(g) The District Industries Officer. … Member.
(h) The District Social Welfare Officer … Member.
(i) The District Village Industries Officer of the Board. … Secretary.
(2) On the first constitution of the District Commi ttees in any District under sub section (1), all
divisional committees, district committees and ad-hoc committees (if any), constituted by the Board
and functioning at the date of commencement of th e Bombay Khadi and Village Industries
(Amendment) Act, 1977 (Mah. LV of 1977) shall cease to function therein.
(3) The term of office of the members of the District Committee shall normally be conterminous
with the term of office of the member of the Boar d but the Board may reconstitute any of the District
Committees, at any time, if it considers necessary to do so.
(4) The Board may, from time to time, with the previo us sanction of the State Govern ment,
delegate to the District Committee such of its powe rs (except the powers to make regulations), and
such of its functions as are specified by regulations made in this behalf.
(5) The Board may at any time withdraw all or any of the powers and functions delegated to a
District Committee, if in its opinion s uch powers and functions are not properly exercised or
discharged by that Committee.
(6) Any member of the District Committee may, at any time, resign his office by writing under
his hand addressed to the Chairman of the District Committee.
(7) When a va cancy occurs in the office of a member of the District Committee by reason of
resignation, death or otherwise, the vacancy shall be filled by the Board as early as practicable:
1 Section 7A was inserted by Mah. 55 of 1977, s. 4.
10 The Maharashtra Khadi and Village Industries Act [1960 : XIX
Provided that, during any such vacancy the continuing members may act as if no vacancy has
occurred.
(8) No act or proceeding of the District Committee shall be questioned or invalidated merely by
reason of any vacancy in its membership on account of resignation, death or otherwise, or by reason of
any defect in the constitution thereof.
(9) The District Committee shall be responsible for th e proper and effective implemen tation of
the various schemes of the Board and shall be accountable to the Board.
(10) In the exercise of its powers and discharge of its functions, the District Committee shall
work under the over all supervision of the Board and shall comply with the instructions and directions
issued by the Board, from time to time. If any dispute arises between, the District Committee and the
Board regarding any matter, the decision of the Board shall be final.
(11) The District Village Industries Officer of the Board shall be the principal executive officer of
the District Committee and shall exercise such powers and discharge such functions as may be
entrusted to him by the District Committee or by the Board.
(12) The Chairman and other members of the District Committee shall be paid such allowances as
may be prescribed.]
1[8. Appointment of committees.— (1) Subject to any rules made in this behalf, the Board may
from time to time constitute one or more committees for the purpose 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 any par ticular khadi or village industry . Such
committees may be constituted for any specified local areas:
2[* * *]
Every such committee shall have a chairman and a member-secretary.
3[* * *]]
4[9. Meetings of Board and Council. — The Board and Council shall meet at such times and
places, and shall observe such rules of procedure in regard to transaction of business at their meetings
(including the laying down of a quorum at meetings) as may be provided by regulations m ade by the
Board under this Act:
Provided that, the Board shall ordinarily meet at least once in a month, and the Council ordinarily
at least once in every three months.]
10. Power to make contracts.— (1) 5[The Board] may enter into and perform all such contracts
as it may consider necessary or expedient for carrying out any of the purposes of this Act.
(2) Every contract shall be made on behalf of 6[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 7[member-secretary or member-secretaries] 8[of the Board or the member -secretary
of the District Committee] in cases specified by him in that behalf.
1 Section 8 was substituted by Mah. 28 of 1965, s. 12.
2 The portion beginning with the words “Provided that” and ending with the words “each District” was d eleted by
Mah. 55 of 1977, s. 5(a).
3 Sub-section (2) was deleted by Mah. 55 of 1977, s. 5(b).
4 Section 9 was substituted by Mah. 28 of 1965 s. 13.
5 These words were substituted for the words “a Board” by Mah. 28 of 1965, s. 14(a).
6 These words were substituted for the words “a Board” Mah. 28 of 1965, s. 14(a).
7 These words were substituted for the word “Secretary” Mah. 28 of 1965, s. 14(b).
8 These words were Substituted for the word “or the Chairman of the Divisional committee” by Mah. 55 of 1977, s. 6.
1960 : XIX] The Maharashtra Khadi and Village Industries Act 11
(3) Every contract made on behalf of 1[the Board], shall, subject to the provisions of this section,
be entered into in such manner and form as may be prescribed.
(4) A contract not executed in the manner provided in this section and the rules made thereu nder,
shall not be binding on 2[the Board].
CHAPTER III
FUNCTIONS AND POWERS OF THE BOARD
11. Function s of Board. — (1) It shall be the duty of 3[the Board] to encourage, organise,
develop and regulate khadi and village industries and perform such functions as the State Government
may prescribe, from time to time.
(2) Without prejudice to the generality of the provisions of sub-section (1), 4[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 industries 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 there at 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 purpose, 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;
(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 incidental and conducive to the objects of this Act;
(j) to discha rge 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.
12. General Powers of Board.— 5[The Board] shall, for the purposes of carrying out 6[its duties
and functions] under this Act, have the following powers, namely :—
(i) to acquire and hold such moveable and immove able property as it deems neces sary and
to lease, sell or otherwise transfer any such property:
1 These words were substituted for the words “a Board” Mah. 28 of 1965, s. 14(a).
2 These words were substituted for the words “a Board” Mah. 28 of 1965, s. 14(a).
3 These words were substituted for the words “every Board” by Mah. 28 of 1965, s. 15.
4 These words were substituted for the words “every Board” by Mah. 28 of 1965, s. 15.
5 These words were substituted for the words “Every Board” by Mah. 28 of 1965, s. 15.
6 These words were substituted for the words “A Board” and “its functions” by Mah. 28 of 1965, s. (16)(a).
12 The Maharashtra Khadi and Village Industries Act [1960 : XIX
Provided that, in the case of immoveable property 1[in relation to which monies of the State
Government are involved or the value of the property exceeds Rs. 25,000,] the aforesaid powers
shall be exercised with the previous sanction of the State Government;
(ii) to incur expenditure and undertake works in any area within its jurisdiction for carrying
out the provisions of this Act for the framing and execution of such schemes as may be entrusted
to it by State Government, subject to the provisions of this Act and the rules made thereunder.
CHAPTER IV
PREPARATION AND SUBMISSION OF PROGRAMMES
13. Preparation and submission of annual programme .— (1) In each year, on such date as
may be fixed by the State Government 2[the Board] shall prepare and forward to the State and
Government a programme of work.
(2) The programme shall contain—
(a) particulars of the scheme which the Board proposes to execute whether in par t 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 purposes of carrying out its functions under this Act; and
(c) such other particulars as may be prescribed.
14. Sanction of programme. — The State Government may approve and sanction the
programme in whole or with such modifications as it deems fit.
15. Supplementary programme. — 3[The Board] may prepare and forward a supplementary
programme for the sanction of the State Government in such form and befor e such date as the State
Government may prescribe and the provisions of section 14 shall apply to such sup plementary
programme.
CHAPTER V
FINANCES, ACCOUNTS, AUDIT AND DEBTS
16. Transfer of property.— The State Government may transfer to 4[the Board] buildings, land
or any other property, whether moveable or immoveable, for use and management by the Board on
such conditions and limitations as the State Government may deem fit for the purposes of this Act.
17. Funds of Board. — (1) 5[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) 6[The Board] may accept grants, subventions, donations and gifts and receive loans from
Government or a loca l authority or any body or association, whether incorpo rated or not, or an
individual for all or any of the purposes of this Act.
(3) All m oney belonging to the fund of 7[the Board] shall be deposited in such manner as the
State Government may, by a special or general order, direct.
(4) The accounts of 8[the Board] shall be operated upon by such officers jointly or individually as
may be authorised by the Board.
1 These words were inserted by Mah. 28 of 1965, s. 16(b).
2 These words were substituted for the words “every Board” by Mah. 28 of 1965, s. 17.
3 These words were substituted for the words “A Board” by Mah. 28 of 1965, s. 18.
4 These words were substituted for the words “a Board” by Mah. 28 of 1965, s. 19.
5 These words were substituted for the words “Every Board” by Mah. 28 of 1965, s. 20(a).
6 These words were substituted for the words “A Board” by Mah. 28 of 1965, s. 20(b) and (c).
7 These words were substituted for the words “a Board” by Mah. 28 of 1965, s. 20(b) and (c).
8 These words were substituted for the words “a Board” by Mah. 28 of 1965, s. 20(b) and (c).
1960 : XIX] The Maharashtra Khadi and Village Industries Act 13
1[17A. Reserve fund of Board. — (1) The Board may establish a reserve fund to which shall be
transferred such portion of its funds as may be prescribed.
(2) The management of the reserve fund, the sums to be carrie d from time to time to the credit
thereof, and application of the moneys comprised therein shall be determined in such manner as may
be prescribed.]
18. Application of fund and property. — All property, fund and other assets of 2[the Board]
shall be held and applied by it subject to the provisions and for the purpose of this Act.
19. Subventions and loans to Board. — (1) The State Government may, from time to time,
make subventions and grants to 3[the Board] for the purposes of this Act on such terms and conditions
as the State Government may determine in each case.
(2) 4[The Board] may, from time to time, with the previous sanction of the State Government and
subject to the provisions of this Act and such conditions as the State Govern ment may determine,
borrow any sum required for the purposes of this Act :
5[Provided that, no such previous sanction shall be necessar y where the sum (not exceeding
6[one crore of rupees]) is to be borrowed from the Commission and is required—
(a) for the purpose of implementing any khadi or village industries scheme, or
(b) for advancing by way of loan to any Individual, body or association or institution
whether incorporated or not, for implementing any such scheme.]
7[19A. Expenditure for research and experiments.— The Chairman shall have power to incur
expenditure, not exceeding the limit prescribed, for experiment and research in the technique of
production of khadi or in the development of any village industry.]
20. Budget.— 8[The Board] shall, on such date as may be fixed by the State Government, prepare
and submit to the State Government the budget for the next financial year showing estimated receipts
and expenditure on capital and revenue accounts according to the programme and the schedule of the
stock.
21. Sanction of Budget. — (1) The State Government may sanction the budget submitted to it
with such modifications as it deems proper.
(2) 9[The Board] shall be competent to re -appropriate such amounts as may be necessary from
one scheme to another subject t o the condition that the cost of any scheme as originally sanctioned
shall not be exceeded by more than 33 ½ per cent.
10* * * *
22. Supplementary budget.— 11[The Board] may submit a supplementary budget for the
sanction of the State Gov ernment in such form and before such date as the State Government may
prescribe and the provisions of section 21 shall apply to such supplementary budget.
23. Annual Report.— 12[The Board] shall prepare and forward to the State Government in such
manner as may be prescribed, an annual report within six months from the end of the financial year
1 Section 17A was inserted by Mah. 28 of 1965, s. 21.
2 These words were substituted for the words “A Board” by Mah. 28 of 1965, s. 22 and 23(a).
3 These words were substituted for the words “A Board” by Mah. 28 of 1965, s. 22 and 23(a).
4 These words were substituted for the words “A Board” by Mah. 28 of 1965, s. 23(b)(i).
5 This proviso was added by Mah. 28 of 1965, s. 23(b)(ii).
6 These words were substituted for the words “such limit as may be prescribed” by Mah. 55 of 1977, s. 7.
7 Section 19A was inserted by Mah. 28 of 1965, s. 24.
8 These words were substituted for the words “Every Board” by Mah. 28 of 1965, s. 25.
9 These words were substituted for the words “A Board” by Mah. 28 of 1965, s. 26(a) and 27.
10 Sub-section (3) was deleted by Mah. 28 of 1965, s. 26(b).
11 These words were substituted for the words “Every Board” by Mah. 28 of 1965, s. 25.
12 These words were substituted for the words “Every Board” by Mah. 28 of 1965, ss. 28 and 29.
14 The Maharashtra Khadi and Village Industries Act [1960 : XIX
giving a complete account of its activities during the previous financial year 1* * * * * * Every such
report shall be laid before each House of the State Legislat ure as soon as may be after it is received by
the State Government.
24. Further report, statistics and returns. — 2[The Board] shall, before such date, and at such
intervals, and in such manner, as the State Government may from time to time direct, submit to the
State Government a report on such matters and such statistics and such returns as the State Government
may direct.
3[25. Accounts and audit. — (1) The Board shall maintain proper accounts and other relevant
records and prepare an annual st atement of accounts including 4[the receipt and payment account] and
balance sheet in such form as may be prescribed.
5[The Board shall maintain regular preform of commercial accounts for the units run by it on
commercial principles and exhibit them in the annual report to be forwarded to the State Government
under section 23].
(2) The accounts of the Board shall be audited by such person as the state Govern ment may
appoint in this behalf.
(3) The auditor appointed under sub-section (2) shall in connection with the audit of the accounts
of the Board have such rights, privileges and authority as may be prescribed; and in particular, shall
have a right to demand the production of books, accounts, connected vouchers and other documents
and papers and to inspect any office of the Board.
(4) The accounts of the Board certified by the auditor together with the audited report thereon
shall be forwarded annually to the State Government before such date as the State Government may
specify in this behalf.
6[(4A) The State Government shall cause the accounts of the Board together with the audit report
thereon forwarded to it under sub -section ( 4) to be laid annually before each House of the State
Legislature.]
(5) The Board shall comply with such directions as the State Go vernment may, after perusal of
the report of the auditor, think fit to issue.]
CHAPTER VI
MISCELLANEOUS
26. Direction by State Government. — (1) In the discharge of its functions, 7[the Board] shall
be guided by such instructions on question of policy as may given to it by the State Government.
(2) If any dispute arises between the State Government a nd 8[the Board] as to whether a question
is or is not a question of policy the decision of the State Government shall be final.
9[26A. Recovery of moneys due to Board as arrears of land revenue.— 10[(1) Where any sum
payable to the Board under any agreement, express or implied or otherwise howsoever, is not paid on
or before the due date and the claim is not disputed the Chief Executive Officer shall send a ce rtificate
1 The words and figures “along with a copy of the annual statements of account referred to in section 25” were deleted by
Mah. 37 of 1975, s. 3.
2 These words were substituted for the words “Every Board” by Mah. 28 of 1965, ss. 28 and 29.
3 Section 25 was substituted by Mah. 28 of 1965, s. 30.
4 These words were substituted for the words “the profit and loss account” by Mah. 55 of 1977, s. 8(a).
5 This portion was added, by Mah. 28 of 1965, s. 8(b).
6 Sub-section (4A) was inserted by Mah. 37 of 1975, s. 4.
7 These words were substituted for the words “each Board” and “a Board” by Mah. 28 of 1965, s. 31.
8 These words were substituted for the words “each Board” and “a Board” by Mah. 28 of 1965, s. 31.
9 Section 26A was inserted by Mah. 34 of 1962, s. 2.
10 Sub-section (1) was substituted by Mah. 28 of 1965, s. 32.
1960 : XIX] The Maharashtra Khadi and Village Industries Act 15
under his hand indicating therein the sum due to the Board and thereupon subject to the provisions of
sub-section (2), the Collector shall recover the sum due as an arrear of land revenue.]
(2) If any question arises whether a sum is payable to th e Board within the meaning of sub -
section (1), it shall be referred to a Tribunal constituted by the State Government for the purpose which
shall, after making such inquiry as it may deem fit, and after giving to the person by whom the sum is
alleged to be payable an opportunity of being heard, decide the question; and the decision of the
Tribunal shall be final and shall not be called in question in any Court or other authority.
(3) The Tribunal shall consist of one person who is not connected with the Bo ard or with the
person by whom the sum is alleged to be payable.
(4) The expenses of the Tribunal shall be borne by the Board.]
1[26B. Power of Board to write off losses. — (1) The Board shall be competent to write off
losses up to five hundred rupees in individual cases, but not exceeding five thousand rupees, in the
aggregate in any financial year, in cases falling under all or any of the following categories that
is to say—
(a) loss of irrecoverable value of stores or of public money due to the ft, fraud, or such other
causes;
(b) loss of irrecoverable advance other than loans; and
(c) deficiency and depreciation in the value of stores. The Chairman shall be competent after
prior consultation with the Financial Adviser to write off losses up to two h undred rupees in an
individual case, but not exceeding two thousand rupees, in the aggregate in any financial year.
(2) On any loss being written off, the Board shall send to the State Government detailed report
thereof, together with a report on the acti on taken (if any) against any person or pe rsons, responsible
for the loss:
Provided that cases involving losses not exceeding two hundred rupees need not be reported to
the State Government, unless in the opinion of the Board there are important features connected with
such losses, which required proper investigation and considerations.]
27. Members of Board and officers and servants of Board to be public servants.— Members
of 2[the Board], 3[members of the District Committees] and officers and servants on 4[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).
28. Protection of action taken under this Ac t.— 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 by or under this Act.
5[29. Rules.— (1) The State Government may by notification in the Official Gazette, make rules
for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may
provide for all or any the following matters, namely :—
(a) the term of office of, and the manner of filli ng casual vacancies among, the members of
the Board, and the terms and conditions of service of the Chairman, the Vice -Chairman, the
member-secretary or secretaries and other members including the salaries, allowances to be paid
to them and the travelling and daily allowances to be drawn by them when they are on tour in
connection with their duties as members of the Board;
1 Section 26B was inserted by Mah. 28 of 1965, s. 33.
2 These words were substituted for the words “a Board” by Mah. 28 of 1965, s. 34.
3 These words were inserted by Mah. 55 of 1977, s. 9.
4 These words were substituted for the words “a Board” by Mah. 28 of 1965, s. 34.
5 Section 29 was substituted by Mah. 28 of 1965, s. 35.
16 The Maharashtra Khadi and Village Industries Act [1960 : XIX
(b) the disqualifications for membership of the Board o r Council, 1[or District Committees]
and the procedure to be followed in removin g a member who is or becomes subject to any
disqualification;
(c) subject to the provisions of sub -section (3) of section 4A, the term of office and other
conditions of service of, the procedure to be followed in the discharge of functions by, and the
manner of filling casual vacancies among, members of the Board;
(d) the powers and duties to be exercised and per formed by the Chairman and
Vice-Chairman and the member-secretary;
2[(dd) the allowances to be paid to the members of the Council under section 6B 3[and of the
District Committees under sub-section (12) of section 7A];
(e) the term of office, the conditions of service and functions of the Financial Adviser;
4* * * * *
(g) the manner and form in which contracts shall be entered into under section 10;
(h) the functions of the Board under section 11;
(i) the other particulars of the programme under section 13;
(j) the form in which and the date before which the supplementary programme shall be
submitted under section 15;
(k) the portion of fu nds of the Board that may be transferred to the reserve fund, the
management, and the sums to be carried from time to time to the credit thereof and the
apExcerpt shown. Open the full act in Lexace.