The ODISHA KHADI AND VILLAGE INDUSTRIES

Orissa Act No. 3 of 1956
*THE ORISSA KHADI AND VILLAGE INDUSTRIES
BOARD ACT, 1955
[Received the assent of the Governor on the 29th March 1955, first published in an
extraordinary issue of the Orissa Gazette, dated the 13th October, 1955.]
AN ACT TO PROVIDE FOR ESTABLISHMENT OF A STATUTORY BOARD
FOR ORGANISING, DEVELOPING AND REGULATING
THE KHADI AND VILLAGE INDUSTRIES
IN THE STATE OF ORISSA.
WHEREAS it is expedient to establish a Board for the purpose of organising,
developing and regulating the Khadi and Village Industries in the State of Orissa;
It is hereby enacted by the Legislature of the State of Orissa in the Sixth
Year of the Republic of India as follows :
CHAPTER-I
Preliminary
1. Short title, extent and commencement.- (1) This Act may be called
the Orissa Khadi and Village Industries Board Act, 1955.
(2) It extends to the whole of the State of Orissa.
(3) It shall come into force on such date as the State Government may, by
notification, appoint.
2. Definitions.- In this Act, unless there is anything repugnant in the
subject or context-
(a) "Board" means the Board established under Section 3;
(b) "khadi" means any handloom cloth woven from yarn handspun in the
Union of India;
(c) "prescribed" means prescribed by rules made under this Act; and
* For Statement of Objects and Reasons, see Orissa Gazette Extraordinary/29-3-1955,
and for Report of the Select Committee, see ibid, dated 13th October, 1955.
The Odisha   Gazette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. Date : 13th October 1955
2
1. Ommited vide Orissa Act 18 of 1969
2. Substituted vide Orissa Act 18 of 1969
(d) "Village industries" means generally all industries whether carried on
within a village or outside it, which from the normal occupation, whether whole-
time or part-time of any class of rural population of the State of Orissa and in
particular such industries as the State Government may by notification specify in
this behalf in consultation with the Board.
Explanation-Village industries shall not include any handloom industries
which produce cloth other than khadi.
CHAPTER-II
Incorporation and constitution of the Board
3. Incorporation of the Board.- (1) The State Government with effect
from such date as they may by notification appoint in this behalf, shall establish
for the purposes of this Act a Board to be called the Orissa Khadi and Village
Industries Board.
(2) The Board established under Sub-section (1) shall be a body corporate
incorporated by its name with perpetual succession and common seal and may
sue and be sued in its corporate name and shall be competent to acquire and
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 the Board and its dissolution.-  (1) The Board
established under Section 3 shall consist of fifteen members both official and
nonofficial, including the President and Secretary to be nominated by the State
Government :
Provided that-
(a) 1[* * *]
(b) the Secretary shall be an officer of the State Government nominated
as such;
(c) not more than one-third of the total number shall be official members
of the Board.
2[(2) The President, Secretary and other members of the Board shall hold
office for such period as the State Government may, by general or special order,
direct.
(2-a) If at any time the State Government, being satisfied that the Board
constituted under this Act is not functioning properly or is incompetent to discharge
its functions decide that it shall be dissolved, they may lay such proposal before
the Orissa Legislative Assembly and on such proposal being accepted by a
resolution of the Assembly, the Board shall stand dissolved on and from the date
on which such resolution is passed.
(2-b) During the interval between the dissolution and the reconstitution of
the Board-
3
1. Substituted vide Orissa Act 50 of 1975
(i) all or any of the powers and functions of the Board and its President
may be exercised and discharged, as far as may be and to such extent as the
State Government may determine, by such person or persons as the S tate
Government may appoint in that behalf;
(ii) all funds and other properties vested in the Board shall vest in the State
Government; and
1[(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.]
(2-c) Upon reconstitution of the Board the funds and other properties of
the Board with the State Government on the date of such reconstitution, shall
vest in the Board and the liabilities of the Board subsisting on the said date shall
be enforceable against the Board.
(3) No member of the Board shall receive or be paid from the fund of the
Board any salary or other remuneration for services rendered by him in any
capacity whatsoever but shall be allowed travelling allowance as prescribed :
Provided that the President may receive such monthly allowance as may
be prescribed.
5. Resignation of members.- Any member may at any time, resign his
office by giving notice thereof in writing to the State Government and on such
resignation being accepted, shall be deemed to have vacated his office.
6. Disqualification for membership.- A person shall be disqualified for
being appointed or for continuing as member of the Board, if he
(a) holds any office of profit under the Board;
(b) is found to be a lunatic or becomes of unsound mind;
(c) is, or at any time has been adjudicated insolvent;
(d) has directly or indirectly by himself, by his wife or son or by any
partner , any share or interest in any subsisting contractor
employment with, by or on behalf of the Board; or
(e) is a Director or a Secretary or a Manager or other salaried officer of
any incorporated company 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 Clause (a) by reason
only of his being a member receiving allowance as provided in Subsection (3) of
Section 4 :
Provided further that a person shall not be disqualified under Clause (d) or
(e) or be deemed to have any share or interest in any contract or employment
within the meaning of these clauses by reason only of his or of the incorporated
company 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
4
1. Substituted vide Orissa Act 18 OF  1969
to any affairs of the Board is inserted :
Provided further that a person shall not also be disqualified under Clause
(e) 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 his being a share-holder of
such a Company.
7. Removal or suspension of a member.- (1) The State Government
may, if satisfied after making such enquiry as they may deem necessary that
any member of the Board-
(a) refuses to perform or is incapable of performing the functions under
the Act; or
(b) has so abused his position as a member as to render his continuance
on the Board detrimental to the interests of the public; or
(c) is absent without permission from all the meetings of the Board for
four successive months or for the period in which three successive
meetings are held, whichever period is longer; or
(d) ceases to reside in the State of Orissa; they may, by notification,
remove such member ;
Provided that the State Government may suspend any member of the
Board pending any inquiry against him :
Provided further that no order of removal under this sub-section shall be
made unless the member concerned has been given an opportunity to submit
his explanation to the State Government.
(2) A member who has been removed under Sub-section (1) shall not be
eligible for appointment as member or in any other capacity to the Board.
8. Vacancies to be filled up expeditiously and proceedings not to
be invalidated in certain cases.- When a member dies or resigns as provided
in Section 5, or subject to any of the disqualifications specified in Section 6 or is
removed by the State Government under Sub-section (1) of Section 7, he shall
cease to be a member of the Board and any vacancy occurring hereby shall be
filled up by the State Government expeditiously :
Provided that no act or proceedings of the Board shall be invalidated merely
by reason of any vacancy in its membership on account of death, resignation or
removal or any defect in the manner of appointment of a member to or the
constitution of the Board.
9. Executive authority to vest in the President and the power of
authorisation.- 1[(1) The executive authority of the Board shall vest in the
President.]
(2) The President of the Board may, as the case may be, from time to time
by an order in writing, authorise the Secretary to discharge such functions and
perform such duties as may be specified in the order.
5
1. Omitted vide Orissa Act 18 OF  1969
10. Staff and their conditions of service.- (1) The Secretary of the
Board specified in Section 4 shall be responsible for executing the orders of the
Board and the President.
(2) There shall not be paid out of the Fund of the Board constituted under
Section 23 any special pay or allowance to the Secretary and he shall continue
to be under the administrative control of the State Government.
11. Location of offices of the Board.- The Board shall af ter the
commencement of this Act have its office at the headquarters of the Government
or at any other place as may be notified by the State Government in this behalf,
to which all communications and notices may be addressed.
12. Power to make regulations in respect of the Board.- The Board
shall, from time to time, make regulations to provide for the date, time, place,
notice, conduct and adjournment of their meetings subject to the following
conditions :
(a) ordinary meeting shall be held once at least in every three months;
(b) the President shall have power to call special meetings;
(c) the quorum in a meeting shall be five;
(d) the proceedings of the meetings of the Board shall be forwarded to
State Government in the department concerned.
13. Power to make contracts.- (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 the Secretary.
(3) Every such contract shall, subject to the provisions of this section, be
entered into in such manner and form as may be prescribed.
(4) Any contract not executed in the manner provided in this section and
the rules made thereunder shall not be binding on the Board.
14. Appointment of Committee.- The Board may from time to time appoint
one or more Committees for the purpose of securing efficient discharge of the
functions of the Board and in particular for the purpose of securing that the said
functions are exercised with due regard to the circumstances and requirements
of any village industries. Such Committees may be appointed for any particular
area.
15. 1[* * *]
CHAPTER-III
Powers and functions of the Board
16. General powers of the Board.- The Board shall for the purposes of
carrying out their functions under this Act, have the following powers:
(i) to acquire and hold such movable and immovable property as it may
6
deem necessary for the purposes of this Act and to lease, sell or otherwise
transfer any such properties :
Provided that in the case immovable properties such powers shall be
exercised with the previous sanction of the State Government;
(ii) to incur expenditure and undertake works in any area of the State for
the framing and execution of such scheme 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 subject to the provisions of this Act and the rules made
thereunder.
17. Functions of the Board.-  (1) It shall be the duty of the Board to
organise, develop and regulate Khadi and Village Industries in the State of Orissa
and perform such functions as the State Government may prescribe from time to
time.
(2) In particular and without prejudice to the generality of the foregoing
powers, it shall have the power to 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 and business in such industries in the State of
Orissa;
(b) to help the people by providing them with work at their homes and
to give them monetary aid;
1[(bb) to grant loans and other assistance to persons and institutions
carrying on the Khadi or other Village Industry subject to such
restrictions and conditions as the Board may deem proper;]
(c) to organise Co-operative Societies and Village Production Councils
in respect of the Industries specified under this Act;
(d) to establish training centres and to train people thereat or at other
centres outside the State in Khadi and other crafts and industries;
(e) to arrange for supply of raw materials, tools and implements and for
sale of finished products;
(f) to arrange for publicity and popularising of finished products of such
industries by opening stores, shops 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 such industries;
(h) to seek and obtain advice and guidance of experts in each subject;
(i) to undertake and encourage research work in connection with such
industries; and
(j) to carry on such activities as are incidental and conductive to the
objects of this Act.
1. Inserted vide Orissa Act 12 OF  1959
7
CHAPTER-IV
Preparation and submission of programme
18. Annual programme.- (1) In each year, on such date as may be fixed
by the State Government, the Board shall prep are and forward to the S tate
Government programme of work.
(2) The programme shall contain -
(a) such particulars of the schemes which the Board proposes to
execute whether in whole or in part during the next year;
(b) particulars of any work or undertaking which the Board proposes to
organise during the next year for the purposes of carrying out its
functions under this Apt ; and
(c) such other particulars as may be prescribed.
19. Sanction of programme.- The State Government may approve and
sanction the programme in whole or with such modification as they deem
necessary :
Provided that if within a period of sixty days from the date of submission of
the programme the State Government's approval and sanction are not received
such programme shall be deemed to have been so approved and sanctioned by
the said Government.
20. Supplementary programme.- The Board may prepare and forward
supplementary programme for the sanction of the S tate Government in such
form and before such date or dates as the State Government may direct and the
provisions of Section 19 shall apply to such supplementary programme.
CHAPTER-V
Finance, accounts, audit and debts
21. Transfer of property.- 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 to impose for the purposes, of this Act.
22. Expenditure etc. till the Board is est ablished.- (1) All debts or
expenditure incurred, all contracts entered into and all matters and things engaged
to be done by , with or for the Cott age Industries Board est ablished by the
Government in the Industries Department Resolution No. 4686-I., dated the 18th
August, 1953, before the date of constitution of the Board under this Act, shall be
deemed to have been incurred, entered into, or engaged to be done by, with or for
the Board so constituted and all suits and legal proceedings instituted or which
may be instituted by or against the said Cottage Industries Board shall be continued
or instituted by or against the said Board under this Act.
(2) All the assets of the Cottage Industries Board referred to in Subsection
(1) shall upon the constitution of the Board vest in the said Board for the purpose
8
of this Act.
23. Funds of Board.- (1) The Board shall have a Fund of its own styled
after its name and all receipts of the Board shall be credited thereto and all
payments by the Board shall be met therefrom.
(2) The Board may accept grants, subventions, donations and gifts and
receive loans from the Government or any 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 Fund of the Board shall be deposited in
such manner as the State Government may, from time to time by a special or
general order, direct.
(4) The accounts of the Board shall be operated upon by such officers
jointly or individually as may be authorised by the Board.
24. Application of fund and property .- All property, funds and other
assets of the Board shall be held and applied by it subject to the provisions and
for the purposes of this Act.
25. Subventions and grants to Board.- (1) The State Government may,
from time to time, make subventions and grants to the Board for the purposes of
this Ad on such terms and conditions as the State Government may determine in
each case.
(2) 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 Government may impose, borrow any sum required for the purposes
of this Act.
26. Budget.- 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 staff
sanctioned by the State Government :
Provided that if within a period of sixty days from the date of submission of
the budget, the State Government's sanction is not received for the same, the
budget shall be deemed to have been so sanctioned by the said Government.
27. Sanction of budget.- (1) The State Government may sanction the
budget submitted to them with such modifications as they deem proper.
(2) The Board shall be competent to re-appropriate such amounts as may
be necessary from one scheme to another and within sub-head and minor heads
subject to the condition that the cost of any scheme as originally sanctioned
shall not exceed by more than 25 per cent.
28. Supplementary budget.- The Board may submit supplementary
budget for the sanction of the State Government in such form and before such
date or dates as the S tate Government may prescribe and the provisions of
Section 26 shall apply to such supplementary budget.
9
29. Annual report.- The Board shall prepare and forward to the S tate
Government, in such manner as may be prescribed, annual report within three
months from the end of the financial year giving a complete account of its activities
during the previous financial year. Every such report shall be laid before the State
Legislature, as soon as may be, after it is received by the State Government.
30. Further reports, statistics and returns.-  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 S tate Government report on such
matters and such statistics and such return as the State Government may direct.
31. Accounts and audit.- The accounts of the Board shall be maintained
and annual statement of accounts shall be prepared in such manner as may be
prescribed. Such accounts shall be examined and audited under the provisions
of the Orissa Local Fund Audit Act, 1948, (Orissa Act V of 1948).
CHAPTER-VI
Miscellaneous
32. Directions by State Government.- (1) In discharge of its functions,
the Board shall be guided by such instructions, on questions of policy, as may
be given to it by the State Government.
(2) If any dispute arises between the State Government and the Board as
to whether a question is or is not a question of policy, the decision of the State
Government shall be final.
33. Members of the Board and members of staff of the Board to be
public servants.- Members of the Board and the staff 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).
1[33A. Recovery of dues. - Where any loan, advance or assistance granted
by the Board to any institution or person is not repaid before the date specified
therefor, the Board may, without prejudice to any other mode of recovery, issue a
certificate for the amount due, to the Collector of the district who shall proceed to
recover the amount in the same manner as an arrear of land revenue.]
34. Protection of action taken.- No suit, prosecution or other legal
proceeding shall lie against any person for anything which is in good faith done
or purported to be done under this Act.
35. Rules.- (1) The State Government may make rules for carrying out the
purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
powers, such rules may provide for all or any of the following matters :
(a) the allowances of members of the Board under Section 4;
(b) the manner and form in which contracts shall be entered into by the
1. Inserted vide Orissa Act 12 OF  1959
10
Board under Section 13;
(c) the manner in which the business of the Board shall be conducted at
the ordinary and special meetings referred to in Section 12;
(d) the functions of the Board under Section 17;
(e) the other particulars of the programme under Section 18;
(f) the form in which and the date before which the supplementary
programme shall be submitted under Section 20;
(g) the form in which and the date before which the budget and the
supplementary budget shall be submitted under Sections 26 and 28;
(h) the manner in which the annual report shall be prepared and forwarded
to the State Government under Section 29;
(i) the manner of maintenance of accounts and preparations of annual
statement of accounts under Section 31;
(j) any other matter which is or may be prescribed under this Act.
36. Regulations.- (1) Subject to the provisions of Section 12 the Board
may, with the previous sanction of the State Government by notification, make
regulations consistent with this Act and rules made thereunder.
(2) In particular and without prejudice to the generality of the foregoing
power, the Board may make regulations providing for-
(a) the procedure and disposal of its business;
(b) remuneration, allowances and other conditions of service of the staff of
the Board;
(c) functions and duties of the Staff of the Board;
(d) functions of Committees and the procedure to be followed, by such
Committees in the discharge of their functions.
37. Savings.- Nothing in this Act shall be deemed to apply to any industry
declared to be a Scheduled Industry under the Industries (Development and
Regulation) Act, 1951 (XLV of 1951) or to affect any of the provisions of the said
Act.
38. Power to remove difficulties.- If any difficulty arises in giving effect
to the provisions of this Act, the State Government may, as occasion may require,
by order, do anything not inconsistent with this Act, or the rules made thereunder,
which appear to them necessary for the purpose of removing the difficulty.

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