The Meghalaya Khadi and Village Industries Board Act,1980 (Act No.27 of 1980)

THE MEGHALAYA KHADI AND VILLAGE, INDUSTRIES BOARD ACT, 1980
Arrangement of Section
Sections
CHAPTER I
Preliminary
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
Meghalaya Khadi and Village Industries Board.
3. Establishment and incorporation of Board.
4. Constitution of the Board.
5. Vacancy.
6. Allowance to members.
7. Appointment of Financial Adviser and Chief Account Officer.
8. Appointment of Chief Executive Officer.
9. Proceedings presumed to be good and valid.
10. Temporary association of persons with the Board for particular purposes.
11. Meeting of the Board.
12. Term of office and conditions of service of the Chairman Vice-Chairman, Secretary
and other members of the Board.
13. Power and duties of the Secretary.
14. Officers and Servants of the board and conditions of their services.
15. Standing finance Committee.
16. Appointment of other Committees.
CHAPTER III
Functions and Powers of the Board.
17. Functions and powers of the Board.
18. General powers of the Board.
19. Powers to make contracts.
20. Powers of the Khadi and Village Industries Commission to give directions.
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CHAPTER IV
Programmes or Schemes of work.
21. Preparation and Submission of Programmes.
22. Sanction of Programme.
23. Supplementary Programme.
24. Power of the Board to alter schemes.
CHAPTER V
Finance, Accounts, audits and Reports.
25. Transfer of property.
26. Funds of the Board.
27. Application of fund and property.
28. Subventions and loans to the Board.
29. Budget.
30. Supplementary Budget.
31. Annual Report.
32. Returns and Reports.
33. Accounts and Audits.
34. Recovery of Arrears.
35. Power to write of losses.
36. Dissolution of the Board.
CHAPTER VI
Miscellaneous
37. Member of the Board and Officers and Servants of the Board to the Public Servants.
38. Protection of action taken under this Act.
39. Power to make Rules.
40. Regulations.
41. Repeal of Assam Act 16 of 1955, as adapted by Meghalaya.
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MEGHALAYA ACT 27 OF 1980
THE MEGHALAYA KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1980
(As passed by the Assembly)
[Received the assent of the Governor of Meghalaya on 17th December 1980]
(Published in the Gazette of Meghalaya, Extra-ordinary, dated the 20th December, 1989)
An
Act
to provide for the better organisation, development and regulation of Khadi and Village
Industries in the State and for establishment and constitution of Khadi and Village Industries
Board for the State by consolidating and amending the existing law on the subject and for
matters, connected therewith and incidental thereto.
Be it enacted by the Legislature of Meghalaya in the Thirty-first Year of the Republic of
India as follows:-
CHAPTER I
Preliminary
Short title extent and
commencement.
1. (1) This Act may be called the Meghalaya Khadi and
Village Industries Board Act, 1980.
(2) It extends to the whole of the State of Meghalaya.
(3) It shall come into force on such date as the State
Government may, by notification, appoint in this behalf.
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Definitions. 2. In this Act, unless the context otherwise requires-
(a) “Board” means the Meghalaya Khadi and Village
Industries Board, established under Section 3;
(b) “Chairman” means Chairman of the Board;
(c) “Government” means the State Government of
Meghalaya;
(d) “Khadi and Village Industries Commission”
means the Khadi and Village Indu stries
Commission established under Section 4 of the
Khadi and Village Industries Commission Act,
1956 (Central Act 61 of 1956);
(e) “Khadi” means any cloth woven on handlooms in
India from cotton, silk or woollen yarn handspun
in India or from mixture of any two or all of such
yarns and includes readymade garments made out
of such cloth;
(f) “Members” means the member of the Board.
(g) “Prescribed” means prescribed by rules made
under this act;
(h) “Regulations” means the regulations made by the
Board under this Act;
(i) “Village Industries” means-
(a) all or any of the Industries specified in the
Schedule to the Khadi and Village Industries
Commission Act, 1956, and includes any other
industry deemed to be specified in the said
Schedule by reason of a notification issued by the
Central Government under Section 3 of the said
Act, and
(b) any other industry specified in this behalf by the
Government by notification in the official gazette
in consultation with the Khadi and Village
Industries Commission and Board.
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CHAPTER II
MEGHALAYA KHADI AND VILLAGE INDUSTRIES BOARD
Establishment &
Incorporation of Board.
3. (1) With effect from such date as the Government may by
notification fix in this behalf, there shall be established a Board to be
called the Meghalaya Khadi and Village Industries.
(2) The Board shall be a body corporate having perpetual succession
and a common seal with power to acquire, hold and dispose of
property and to contract and may, by the said name, sue and be sued.
Constitution of the
Board.
4. (1) The Board shall consist of such number of member, as the State
Government may appoint;
(2) One of the members of the Board shall be appointed by the State
Government as the Chairman and another as the Secretary. The State
Government may, if it so decides, also appoint another member of
the Board as the Vice-Chairman.
Vacancy 5. (1) The Chairman, the Vice -Chairman, the Secretary or any other
member of the Board may, at any time resign his office by
submitting his resignation in writing to the State Government
provided that the resignation shall not take effect until it is accepted.
(2) In the event of any vacancy in the office of a member of the
Board by reason of death, resignation or removal such vacancy shall
be filled up by appointment by the Government and the member
appointed in such vacancy
Allowance to
members.
6. (1) The Chairman, the Vice -Chairman, the Secretary or any other
member of the Board shall receive such allowances as the
Government may decide and at such rates as may be prescribed.
(2) The allowances to the members shall be paid from the fund of the
Board.
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Appointment of Financial
adviser and Chief
Accounts Officer.
7. The State Government may appoint a person, not being a member of
the board of the Board, as Financial Adviser and Chief Accounts
Officer of the Board. He shall hold office for such period as the State
Government may, by general or special order, direct and unless
otherwise directed by the State Government, he shall receive his
salary and allowances from the fund of the Board.
Appointment of Chief
Executive Officer.
8. The State Government may appoint an officer of his own to act as
the Chief Executive Officer of the Board. He shall hold office for
such period as the State Government may, by general or special
order, direct and unless otherwise directed by the State Government
he shall receive his salary and allowances from the fund of the
Board.
Proceedings presumed to
be good and valid.
9. No act or proceeding of the Board shall be questioning or be
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.
Temporary association of
persons with the Board
for particular purposes.
10. (1) The board may associate with itself in such manner and for such
purpose as may be determined by regulations made under this act,
any person whose assistance or advice it may desire in complying
with any of the provisions of this Act.
(2) A person associated with th e Board under sub-section (1) for any
purpose shall have the right to take part in the discussions of the
Board relevant to that purpose, but shall not have the right to vote
and shall not be a member for any other purpose.
(3) Government may, by order, d epute one or more officers of the
Government to attend any meeting of the Board and to take part in
the discussions of the Board but such officer or officers shall not
have the right to vote.
Meeting of the Board. 11. (1) The Board shall meet and shall, from time to time , make
arrangement with respect to date, time, notice, management and
adjournment of its meetings as is thinks fit. Such meetings shall be
held at least once in every three months;
Provided that when the Chairman, in consultation with the
Secretary or Chief Executive Officer, decides that an emergency
meeting of the Board should be called in the interest of the Board, fix
date, time and place for the same.
(2) The Chairman shall preside over the meeting of the Board and in
his absenc e the Vice -Chairman and in the absence of both, the
member elected in the meeting from among the members shall
preside.
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(3) All questions at a meeting of the Board shall be decided by the
majority of the votes of the members present and voting; and in the
case of any equality of votes , the Chairman or in his absence the
Vice-Chairman and in absence of both the member presiding, shall
have a second or casting vote.
(4) The proceedings of the meeting of the Board shall be forwarded
to the Government and relevant extracts sent to the Khadi and
Village Industries Commission within fifteen days of every meeting.
Term of office and
conditions of services of
the Chairman, Vice-
Chairman, Secretary and
other members of the
Board.
12. The term of office and the terms and conditions of services of the
Chairman, the Vice -Chairman, the Secretary and other members of
the Board shall be such as may be prescribed.
Power and duties of the
Secretary.
13. The Secretary shall exercise such powers and discharge such duties
as may be prescribed or as may, from time to time, be delegated to
him, by the Government or by the Chairman.
14. (1) The Board may appoint such members of the staff as it may
consider necessary.
(2) The remuneration, allowances and other conditions of services of
the members of the staff of the Board shall be such as may be
determined by the Board.
Standing Finance
Committee.
15. The Board may constitute from among the members of the Board a
Standing Finance Committee relating to finances of the Board.
Appointment of other
committees.
16. The Board may, from time to time, appoint 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
Khadi or any particular Village Industry. Such Committees may be
appointed for any particular area or areas.
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CHAPTER III
Functions and Powers of the Board
Functions and Powers of
the Board.
17. (1) It shall be the duty of the Board to encourage, organise, develop
and regulate Khadi and Village Industries and perform such
functions as the functions as the Government may prescribe from
time to time.
(2) Without p rejudice to the generality of the provisions of sub -
section (1) the board shall also in particular discharge and perform
all or any of the following duties and functions, namely:-
(a) to start, encourage, assist and carry on Khadi and Village
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 fo r
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 same purposes; and
(iii) to sell and to arrange for the sale of the products of the
said industries;
(f) to arrange for publicity and popularising of finished products
of Khadi and Village Indus tries by opening stores, shops,
emporia or exhibition and to take similar measures for the
purposes;
(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.
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(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 discharge such other duties and to perform such other
functions as the Government may direct for the purpose of
carrying out the objects of this Act.
General powers of the
Board.
18. The Board shall, for the purpose 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 any lease, sale/mortgage, hypothetication or
other transfer to any persons or authority other than the
Khadi and Village Industries Commission of any immovable
property belonging to the Board shall be null and void unless
it is sanctioned by the Government.
(ii) to incur expenditure and undertake any work in any area in
the State for the framing 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 b y the
Government;
(iii) to  borrow money from the Khadi and Village Industries
Commission and also to hypothecate or mortgage properties
as securities against the loans;
(iv) to write off minor irrecoverable losses as provided for under
Section 35 of this Act.
Power to make contracts. 19. (1) 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 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, Secretary or Chief
Executive Officer.
(3) Every contract made on behalf of the Board shall subject to the
provisions of this section, be entered into in such manner and form as
may be prescribed.
(4) A contract not executed in the manner provided in this section
and the rules made thereunder, shall not be binding on the Board.
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Powers of the Khadi and
Village Industries
Commission to give
directions.
20. In the performance of its functions under this Act, the Board shall be
bound by such direction as the Khadi and Village Industries
Commission may giver to it from time to time in the implementation
of Schemes financed by the Commission.
CHAPTER IV
Programmes or schemes of work
Preparation and
submission of
programmes.
21. (1) In each year, on such date as may be fixed by the Government,
the Board shall prepare and forward to the Government a
programme.
(2) The programme shall contain-
(a) Particulars of the Schemes which the Board proposes to
execute whether in part or whole during the next year;
(b) Particulars of any work or undertaking which the Board
proposes to execute during the next year for the purpose of
carrying out its functions under this Act; and
(c) Such other particulars as may be prescribed.
Sanction of programme. 22. The Government may in consultation with the Khadi and Village
Industries Commission, approve and sanction the programme in
whole or part or with such modification as it deems fit.
Supplementary
programmes.
23. The Board may prepare and forward a supplementary programme for
the sanction of the Government in such form and before such date as
the Government may prescribe and the provisions of section 22 shall
apply to such supplementary programme.
Power of the Board to
alter schemes.
24. The Board may, with the previous approval of the State Government,
make any alteration in any scheme so long as the aggregate amount
sanctioned for the scheme is not exceeded. A report of the alteration
shall be sent to Khadi and Village Industries Commission in such
form and within such time as may be prescribed.
CHAPTER IV
Finance, Accounts, Audit and Reports
Transfer of property 25. The State Government may transfer to the Board buildings, land or
any other property, whether movable or immovable, for use and
management by the Board on such conditions and limitations as the
State Government may deem fit for the purposes of this Act.
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Funds of the Board. 26. (1) The Board shall ha ve its own fund and all receipt of the Board
shall be credited thereto, and all payments by the Board shall be met
therefrom.
(2) The Board may accept grants, subventions, donations and gifts
and receive loans from Governm ent or a local authority or any body
or association, whether incorporated or not, or an individual for all or
any of the purposes or this Act. It may also create reserves for
irrecoverable losses and losses in direct trading activities.
(3) All moneys belonging of the fund of the Board shall be deposited
in a Government Treasury or the State Bank of India, or the
Meghalaya Co -operative Apex Bank Ltd., or any other Bank,
approved by the Government;
Provided that it will not be necessary for all the moneys to be
kept in any one Bank or Treasury.
(4) The accounts of the Board shall be operated upon by such
officers jointly or individually as may be authorised by the Board.
Application of
Fund and property.
27. All property, fund and other assets of the Board shall be held and
applied by it subject to the provisions and for the purposes of this
Act.
Subventions and loans to
the Board.
28. (1) The Government may, from time to time, make subvention and
grants to the Board for the purpose of this Act on such terms and
conditions as the Government may determine in each case.
Establishment expenditure of the State Board will be the sole
responsibility of State Government. Similarly, it may grant
subvention compensating irrecoverable debts.
(2) The Board may from time to time, with the pre vious sanction of
the Government and subject to the provisions of this Act and such
conditions as the Government may determine, borrow any sum
required for the purpose of this Act:
Provided that the previous sanction of the Government shall not
be necessary to borrow any sum from the Khadi and Village
Industries Commission
Budget. 29. (1) The Board shall, by such date, in each year, ads may be
prescribed, prepare and submit to th e Government for approval the
budget in the prescribed form for the next financial year showing the
estimated receipts and expenditure in respect of Khadi and Village
Industries respectively during that financial year. The board shall
forward a copy of the budget to the Khadi and Village Industries
Commodities for information and comments, if any.
(2) Subject to the provisions of sub -sections (3) and (4) , no sum
shall be expended by or on behalf of the Board unless such
expenditure is covered by a specific provision in the budget
approved by the Government.
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(3) The Board may, within the respective limits of the budget,
sanction any reappropriation from one head of expenditure to another
or from a provision made for one scheme to that in re spect of
another:
Provided that no reappropriation from the head “Loan” to any
other head of expenditure and vice versa in the budget shall be
sanctioned by the Board except with the previous approval of the
Government and the Khadi and Village Industries Commission.
(4) The Board may within such limits and subject to such conditions
as may be prescribed incur expenditure in excess of the limit
provided in the budget approved by the Government under any head
of expenditure or in connection with any p articular scheme so long
as the aggregate amount in either budget approved by the
Government is not exceeded.
Supplementary
Budget.
30. The Board may submit a Supplementary budget for the sanction of
the Government in such form and before such data as the
Government may prescribe and the provision of section 29 shall
apply to such supplementary budget.
Annual Report. 31. (1) The Board shall prepares and forward to the Government in such
manner as may be prescribed an annual report within three months
from the end of the financial year giving a complete account of its
activities during the previous financial year along with a copy of the
animal statement of accounts referred to in section 33.
(2) The Board shall prepare and forward to the Khadi and Village
Industries Commission an annual report within three months from
the end of the financial year giving a complete account of the funds
received by the Board from the said Commission and the activities
carried on by the Board from and out of such fund during the
previous financial year.
(3) The report received by the Government under sub -section (1)
shall be laid before the State Legislature as soon as may be after it is
received by the Government.
Returns and Reports. 32. (1) The board shall furnish to the Gove rnment and the Khadi and
Village Industries Commission at such time and in such form and
manner as may be prescribed or as the Government may direct, such
returns and statements and such particulars in regard to any proposed
or existing programme for the p romotion and development of Khadi
and Village Industries as the Government may, from time to time
require.
(2) Without prejudice to the provisions of sub -section (1), the Board
shall, as soon as possible after the end of each financial year, submit
to the Government a report in such form and before such date as may
be prescribed, giving true and full account of its activities policy and
programme during the previous year.
Accounts and
Audit
33. (1) The Board shall cause proper accounts and other records in
relation thereto to be kept, including a proper system of internal
check and prepare an Annual Statement of Accounts including the
Profit and Loss Account and the Balance Sheet in such form as may
be prescribed by the State Government in consultation with t he
Comptroller and Auditor-General of India.
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(2) The Accounts of the Board shall be audited by the Comptroller
and Auditor-General of India or by such person as he may authorise
in this behalf and any expenditure incurred by him in connection
with such audit shall be payable by the Board to the Comptroller and
Auditor-General of India.
(3) The Comptroller and Auditor -General of India and any person
authorised by him in connection with the audit of the accounts of the
Board shall have the same right s, privileges and authority in
connection with such audit as the Comptroller and Auditor -General
of India has connection with the audit of Government accounts and
in particular shall have the right to demand the production of books
of accounts, connected v ouchers and other documents and papers,
and to inspect any of the offices of the Board.
(4) The Accounts of the Board as certified by the Comptroller and
Auditor-General of India or any other person authorised by him in
this behalf together with the Audit Report thereon shall be forwarded
annually to the State Government and that Government may issue
such instructions to the board in respect thereof as it deems fit and
the Board shall comply with such instructions.
(5) The State Government shall –
(a) cause the accounts of the Board together with the Audit
Report thereon forwarded to it under sub -section (4) to be
laid annually before the State Legislature; and
(b) cause the accounts of the board to be published in the
prescribed manner and make available copies thereof on sale
at a reasonable price.
Recovery of
Arrears
34. If any amount due to the Board in accordance with the terms of a
contract or otherwise or any sum payable in connection therewith,
has not been paid, the Board may without prejudice to any other
remedy provided by law, recover such amount or sum as arrears of
land revenue.
Power to
write off
losses.
35. The Board shall be competent to write of losses upto Rs.500 in
individual cases and not exceeding Rs.5,000 in the aggregate in any
financial year in cases failing under all or any of the following
categories:-
(a) loss of irrecoverable value of stores or of public money due
to theft, fraud or such other cause;
(b) loss of irrecoverable advance other than loans; and
(c) deficiency and depreciation in the value of stores.
Dissolution of the
Board
36. (1) If at any time the Government are satisfied that –
(a) the Board has without reasonable cause or excuse made
default in the discharge of its duties or in the performance o
its functions imposed of entrusted by or under this Act, or
exceeded or abused its powers, or
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(b) circumstances have so arisen that the Board is rendered
unable, or may be rendered unable, to discharge its duties or
perform its functions under this Act, or
(c) it is otherwise expedient or necessary to dissolve the Board,
the Government may, by notification, dissolve the Board for
such period as may be specified in the notification and
declare that the duties, powers and functions of the Board
shall during the period of its di ssolution, be discharge,
exercised and performed by such person or authority, as may
be specified in the notification:
Provided that the Government shall, before dissolving
the Board, give reasonable opportunity to it to show cause
against the proposed action.
(2) The Government shall before the expiration of the period of
dissolution, reconstitute the Board in accordance with the provisions
of section 3 and 4.
(3) The Government may make such, incidental and consequential
provision as may a ppear to them to be necessary for giving effect to
the provision of this section.
(4) Any notification issued or order made by the Government under
this section shall not be questioned in any court of law.
(5) On the Board being dissolved under sub-section (1) –
(i) all properties and funds, which immediately before the said
date were in the possession of the Board for the purposes of
this Act shall vest in the State Government.
(ii) all members, with effect from the date of the notification
under sub -section (1), shall vacate and be deemed to have
vacated office as members of the Board, and
(iii) all rights, obligations and liabilities (including any liabilities
under any contract) of the Board shall become the rights,
obligations and liabilities of the State Government.
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CHAPTER VI
Miscellaneous
Member of the Board and
Officers and Servants of
the Board to be public
servants.
37. Members of the Board and 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 29 of the Indian Penal Code.
Protection of action taken
under this act.
38. No suit, prosecution or other legal proceedings shall lie against the
State Government, the Board or an officer or person for anything
which is in good faith done or purported to be done by or under this
Act.
Power to
make Rules
39. (1) The Government may, by notification, make rules, to give effect
to the provisions of this Act.
(2) In particular and without prejudice to the generality of the
foregoing powers, such rule s may provided for all or any of the
following matters, namely-
(a) the place at which the office of the Board shall be located;
(b) the term of office of and the manner of fi lling casual
vacancies among the members of the Board and the term
and conditions of service of the Chairman, Vice -Chairman,
the Secretary and the other members of the Board,
including the salaries and allowances to be paid to them
and travelling and daily allowances to be drawn by them;
(c) the disqualifications for membership of the Board and the
procedure to be followed for removing a member who is or
becomes subject to any disqualifications;
(d) powers and duties to be exercised and performed by the
Chairman and the Vice-Chairman;
(e) the conditions subject to which and the mode in which,
contracts may be entered into by or on behalf of the Board;
(f) constitution of the Standing Finance Committee;
(g) the procedure to be followed in the performance of
functions by members of the Board;
(h) the powers and duties to be exercised and discharged by the
Secretary, the Financial Adviser and the Executive Officer
of the Board.
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(i) the date by which and the form in which the budget and the
supplementary budget shall be pr epared and submitted in
each year under sections 29 and 30;
(j) the procedure to be followed for placing the Board in
possession of funds;
(k) the procedure to be followed and the conditions to be
observed in borrowing moneys and in granting loans;
(l) the form and manner in which the returns, reports or
statements shall be submitted under section 32;
(m) the form and manner in which the accounts of the Board
shall be maintained under section33; and
(n) any other matter which has to be, or may be, prescribed.
Regulations. 40. (1) The Board, with the previous sanction of the Government by
notification, make regulations not inconsistent with this Act and the
Rules made thereunder, for enabling it to perform its functions under
this Act.
(2) In particular and without prejudice to the generality of the
foregoing power, such regulation may provide for all or any of the
following matters, namely-
(a) the terms and conditions of appointment and service and the
scales of pay of Officers and servants of the Board other than
the Secretary including the payment of travelling and daily
allowances in respect of journeys undertaken by such
Officers and servants for the purposes of this Act;
(b) the time and place of meetings of the Board, the procedure to
be followed in regard to transaction of business at such
meetings and the quorum necessary for the transaction of
such business at a meeting;
(c) functions of committees and the procedure to be followed by
such committees in the discharge of their functions;
(d) the delegation of pow ers and duties to the Standing Finance
Committee, Secretary or any employees of the board;
(e) the maintenance of minutes of meeting of the Board and
transmission of copies thereof to the Government and the
Khadi and Village Industries Commission;
(f) the person s by whom and the manner in which payments,
deposits and investments may be made on behalf of the
Board.
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(g) the custody of moneys required for the current expenditure
of the Board and investment of moneys not so required; and
(h) the maintenance of accounts;
(3) The Government may, by notification, rescind any regulations
made under this section and thereupon, the regulation shall cease to
have effect.
Repeal of
Assam Act 16
of 1955 as
adapted by Meghalaya.
41. The Meghalaya Khadi and Village Industries Board Act is hereby
repealed.
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