The Tamil Nadu Khadi and Village Industries Board Act, 1959

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THE TAMILNADU KHADI
AND
VILLAGE INDUSTRIES BOARD
ACT, 1959 AND THE
RULES AND REGULATIONS
FRAMED UNDER THE ACT
(TAMILNADU ACT 18 OF 1959)
(Corrected up to 2014)
2

THE TAMIL NADU KHADI AND VILLAGE INDUSTRIES
BOARD ACT, 1959 (MADRAS ACT 18 OF 1959)

(As modified up to the 5th August 1960)

(Revised the assent of the G overnor on the 23 rd October 1959, first published in
the “Fort St. George Gazette” on the 28th October 1959 (Kartika 6,1881).

REFERENCES TO PAPERS CONNECTED
WITH THE PRINCIPAL ACT.

1. The Tamil Nadu Khadi and Village Industries Board Act, 1959
(Tamilnadu Act 18 of 1959)

(For statement of Objects and Reasons, see the Fort St. George Gazette
Extraordinary, dated the 8 th April 1959, Part IV -A, page 141; for Act, see the
Fort St. George Gazette, dated the 28th October 1959, Part IV-B, Pages 249-260)

TABLE OF CONTENTS
PREAMBLE
SECTIONS.
CHAPTER I-PRELIMINARY
1. Short title, extent and commencement.
2. Definition.

CHAPTER II THE KHADI AND VILLAGE
INDUSTRIES BOARD

3. Establishment and constitution of the Board.
4. Resignation of Office by member.
5. Vacancies, etc., not to invalidate acts and proceedings of the Board.
6. Temporary association of persons with the Board for particular purposes.
7. Meetings of the Board.
8. Term of office and co nditions of service of Vice -President, Secretary and
other members.
9. Officers and servants of the Board.
10. Standing Finance Committee.

CHAPTER III FUNCTIONS OF THE BOARD

11. Functions of the Board.
12. General powers of the Board.
13. Power of Government to give directions.

CHAPTER IV – FINANCE, ACCOUNTS,
AUDIT AND REPORTS

14. Transfer of property of the Board.
15. Funds of the Board.
16. Subventions, loans and grants to the Board.
17. Power of the Board to spend.
18. Budget.
19. Borrowing of money.
20. Accounts and audit.
21. Power to alter scheme.
22. Power to write off irrecoverable amount.
23. Recovery of arrears.
24. Returns and reports.

CHAPTER V – MISCELLANEOUS

25. Dissolution of the Board.
26. Preparations and submission of annual programme and establishment
schedules.
27. Members, Officers and other servants of the Board to be public servants.
28. Protection for Acts done in good faith.
29. Power to make rules.
30. Power to make regulations.
31. Operation of other laws not affected.

THE TAMILNADU KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1959.
(TAMILNADU ACT 18 OF 1959)

An Act to provide for the establishment of a Board for the development of Khadi
and Village Industries and for matters connected therewith in the State of Tamilnadu.

Whereas it is expedient to provide for the establishment of a Board for the
development of Khadi and Village Industries and for matters connected therewith in the
State of Tamilnadu. Be it enacted in the Tenth Year of the Republic of India as Board
Act 1959.
4

CHAPTER – I - PRELIMINARY
Short title,
extent and
commence -
ment:-

1. (1) This Act may be called the Tamilnadu Khadi and Village Industries
Board Act 1959.

(2) It extends to the whole of the State of Tamilnadu.

(3) It shall come into force on such date as the Government may, by
notification, appoint came into force on the 1st April 1960.

Definition :
In this Act,
unless the
context
otherwise
requires :-

2. (a) Board” means the Tamilnadu Khadi and Village Industries Board
established under sub-section (1) of section 3;

(b) “Government” means the Tamilnadu Government;

(c) “Khadi” means any cloth woven on handlooms, in India from cotton,
silk or woolen yarn, handspun in India or from a mixture of any two
or all of such yarns;

(d) “Khadi and Village Industri es Commissions” means Khadi and Village
Industries Commission established under section 4 of the Khadi and
Village Industries Commission Act, 1956 (Central Act 61 of 1956);

(e) “Member” means a member of the Board and includes the President;

(f) “President” means the President of the Board;

(g) “Secretary” means the Secretary of the Board appointed under clause
of sub-section (2) of section 3;

(h) “Village Industries” means-

(i) all or any of the industries specified in the Schedule to the Khadi
and Village Industries Commission Act, 1956 (Central Act 61 of
1956); and

(ii) any industry specified in this behalf by the Government by
notification in consultation with the Board;
and includes any other industry deemed to be specified in the said
Schedule by reason of a notification under section 3 of the said Act.

CHAPTER II – THE KHADI AND VILLAGE INDUSTRIES BOARD
5

3. 1. With effect from such date as the Government may, by
notification fix, i n this behalf, there shall be established a
Board to be called the Tamilnadu Khadi and Village
Industries Board. It 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.

Establishment
and
constitution
of the Board
2. (a) The Board shall consist of not more than fifteen members
including the President, the Vice -President, and the
Secretary (where the Secretary is appointed by the
Government from amongst the members). The appointment
of members except the President, shall be made by the
Government and shall be published in the Tamilnadu
Gazette.

(b) The Minister in charge of Khadi development in the State
shall be the President of the Board.

(c ) The Vice-President shall be elected from amongst the non -
official members of the Board.

(d) The Government may, in consulat ion with the Board,
appoint a person who may or may not be a member of the
Board to be the Secretary of the Board.

(e) The majority of the members shall be non – officials.
(f) The Government shall appoint as members:-
Provided that where a person other than a member is appointed as
Secretary, he shall not be entitled to vote at meetings of the Board.

(i) only such non -officials as have shown an active
interest in the production and development of Khadi or
in the development of Village Industries, and

(ii) Officials.

4. Any member may resign his office by giving notice in writ ing to the
Government and on such resignation being notified in the Tamilnadu
Gazette by the Government, he shall be deemed to have vacated his
office.

Resignation
of office by
member:-
5. No Act or proceedings of the Board shall be invalid by reason onl y of
the existence of any vacancy amongst its members or any defect in
the constitution thereof.

Vacancies
etc., not to
invalidate
acts and
proceedings
of the Board

Temporary 6. (1) The Boar d may associate with itself in such manner and for
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association of
persons with
the Board for
particular
purpose

such purposes 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 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 be a member for any other
purpose.

(3) The Government m ay, by order, depute one or more officers
of the Government to attend any meetings 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.

Meetings
of the Board
7. (1) The Board sha ll meet at such times and places and shall,
subject to the provisions of sub sections (2) to (4) observe
such rules of procedure in regard to transaction of business at
its meetings (including the quorum at meetings) as may be
provided by the regulations made by the Board under this Act.

Provided that the Board shall meet at least once in every three months.

(2) The President may, whenever he thinks fit call special meeting
of the Board.

(3)` The President or in his absence the Vice -President, or if he is
also absent, such member as may be chosen by the members
present from among themselves shall preside at a meeting of
the Board.

(4) All questions at a meeting of the Board shall be decided by a
majority of the votes of the members president and voting in
the case of an equality of votes, the President or in his
absence the person presiding shall have a second or casting
vote.

(5) The proceedings of the meeting of the Board shall be
forwarded to the Government within fifteen days of eve ry
meeting.

8. The term of office and the terms and conditions of service of
the Vice – President, the Secretary and the other members of
the Board shall be such as may be prescribed.

Term of office
and conditions
of service of
president
secretary and
other members
9. (1) 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 President .

Officers and
servants of
the Board
(2) Subject to such regulations as may be made b y the Board in
this behalf the Board may appoint such other officers and
servants as it considers necessary for the efficient
performance of its functions.

10. The Board may constitute a standing finance committee
consisting of the Vice - President and not more than four
members. The Vice -President shall be the chairman of the
committee. The Committee shall exercise such powers and
perform such functions relating to the finance of the Board as
may be laid down by regulations made by the Board.

Standing
Finance
Committee
CHAPTER III FUNCTIONS OF THE BOARD

11. (1) Subject to the provisions of this Act, the functions of the
Board shall generally be to plan organize and implement
programmes for the developmen t of Khadi and Village
Industries.

Functions of
the Board

(2) In particular and without prejudice to the generality of the
foregoing power, the Board may take such steps as it may
think fit.

(a) to start, encourage, assist and run Khadi and Villag e
Industries;

(b) to provide deserving persons with gainful employment in
their homes through the organization of Khadi and
Village Industries;

(d) to organize co -operative societies for Khadi and Village
Industries;

(e) to conduct training centre s and train persons at such
8

centers or at other centre s outside State of Tamilnadu in
Khadi and Village Industries;

(f) to arrange for the s upply of raw materials, tools and
implement to such Industries and for the sale of their
finished products;

(g) to arrange for the publicity and popularization of the
finished products of such Industries by opening stores,
shops, emporia, exhibitions and the like;

(h) to educate public opinion and cultivate in the public a
preference for such Industries and for utilization of their
products;

(i) to seek and obtain advice and guidance of experts;

(j) to encourage and promote research in the technique of
production of Khadi or in the development of Village
Industries, and

(k) to provide facilities for a study of the problems relating to
Khadi or Village Industries.

12. The Board shall for the purpose of carrying out its functions
under this Act, have the following powers, namely:-

General
powers of the
Board:-
(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 lea se, sale or other
transfer to any person 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 appoint a Committe e or Committees for securing the
efficient performance of i ts functions and in particular for
ensuring that such function are performed with th e due
regard to the requirement of the local area concerned;

(iii) 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 the carrying out
the provisions of this Act, or as may be entrusted to it by the
Government; and

(iv) to enter into any contra ct and to do all things necessary for
the purpose of this Act.

13. In the performance of its functions under this Act., the Board shall be bound
by such directions as the Government may give to it.

Power of
Governme
nt to give
directions:
-

CHAPTER IV - FINANCE, ACCOUNTS,
AUDIT AND REPORTS

14. The Government may transfer to the Board any building, land or other
property, movable or immovable for the use of and management by the
Board on such conditions and subject to such limitations as may b e
imposed by the Government.

Transfer
of
property
to the
Board:-

15. (1) The Board shall have two separate funds to be called the Khadi Fund
and the Village Industries Fund. All grants and advances made to the
funds from time to time by the Government for the purpose of the
development of Khadi or the development of Village Industries and all
other grants, subventions, donations, gifts and loans received from
the Central Government or any State Government or the Khadi and
Village Industries Commission or any local authority of any body or
organization, whether incorporated or not, or any individual for all or
Village Industries Fund, as the case may be, and all payments by the
Board for, or in receipt of Khadi and Village Industries shall be made
from the appropriate fund.

Funds of
the
Board:-

(2) Except as otherwise directed by the Government all moneys
belonging to such funds shall be deposited in such manner as the
government may, by general or special order, direct or be invested in
such securities as may be approved by the Government.

16. (1) The Government may, from time to time make subventions and grants
to the Board for the purposes of this Act on such terms and conditions
as the Government may, in each case, determine.

Subventio
ns, l oans
and grants
to the
Board:-

(2) The Government may, from time to time advance loans to the Board
on such terms and conditions not inconsistent with the provisions of
this Act as the Government may determine.

17. Subject to the provisions of sect ion 18, the Board shall have power to
spend such sums as it deems fit on purpose authorized by this Act;

Provided that nothing in this section shall be deemed to prevent Board
from spending, with the previous approval of the Government, such
moneys as it thinks fit o n any such purpose outside the State of
Tamilnadu.

Power of
the Board
to spend:-
Budget:-

18. (1) The Board shall, by such date in each year as may be
prescribed, prepare and submit to the Government for
approval two separate budgets in t he prescribed form for the
next financial ye ar to be called the Khadi and the Village
Industries Budget showing the estimated receipts and
expenditure in respect of Khadi and Village Industries
respectively during that financial year.

(2) Subject to t he 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.

(3) The Board may, within the respective limits of the Khadi
budget and the Village Industries budget, sanction any re -
appropriation from one head of expenditure to another or from
a provision made for one scheme to that in respect of another,
but in no case shall a re -appropriation of fund be made from
the Khadi budget to the Village Industries budget or from the
Village Industries, budget to the Khadi budget.
Provided that no re -appropriation from the head “Loan” to any
other head of expenditure and vice -versa in either Budget
shall be sanctioned by the Boar d expect 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 particular scheme so long as the aggregate amount
in either budget approved by the Government is not
exceeded.

Borrowing of
money:-
19. Subject to such rules as may be made in this behalf by the
Government, the Board shall have power to borrow on the security
of the Khadi Fund or the Village Industries Fund or any other asset
for any purpose to which such Fund or asset may be applied.
11

20. (1) The Board shall be mai ntain proper accounts and other
relevant records and prepare an annual statement of accounts
including the profit and loss account and the balance sheets in
such form as may be prescribed.

Accounts and
Audit:-

(2) The accounts of the Board shall be aud ited by such persons
as the Government may appoint in this behalf.

(3) The person appointed under sub -section (2) shall in
connection with such audit, have such rights, privileges and
authority, as may be prescribed and in particular such auditor
shall have the right to demand the production of books
accounts, connected vouchers, and other document and to
inspect any of the officers of the Board.

(4) The accounts of the Board as certified by such auditor
together with the audit report there on shall be forwarded
annually to the Government and the Khadi and Village
Industries Commission before such date as the Government
may specify in this behalf.

(5) The Board shall comply with such directions as the
Government may, after perusal of the report o f the auditor
think fit to issue.

21. The Board may, with the previous approval of Khadi and Village
Industries Commission, make any alteration in any scheme so long
as the aggregate amount sanctioned for the scheme is not
exceeded.

Power to alter
scheme:-
22. The Board may write off any amount whatsoever due to it, whether
under a contract or otherwise or any sum payable in connection
therewith, if in its opinion such amount or sum is irrecoverable.

Provided that the Board shall, before writing off a ny such amount or
sum exceeding three thousand rupees, obtain the sanction of the
Government.

Power to write
off
irrecoverable
amount:-
23. If any amount due to the Board in accordance with the terms of a
contract or otherwise or any sum payable in co nnection there with
has not been paid in the Board may, without prejudice to any
other remedy provided by law,recover such amount or sum as
arrears of land revenue.

Recovery of
Arrear:-
Returns and 24 (1) The Board shall furnish t o the Government such time and
12

reports:-

manner as may be prescribed or as the Government may
direct, such returns and statement and such particular in regard
to any proposed or existing programme for the promotion and
development of Khadi and Village Industries as the
Government may, from time to time require.

(2) Without prejudice to the provisions of sub -sections (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 a true and full
amount of its activities, policy and programme during the
previous financial year.

(3) All returns, statements and particulars furnished by the Board
to the Government under sub -section (1) shall, as soon as
possible after they are so furnished be place on the table of
both the Houses of Legislature.

CHAPTER V – MISCELLANEOUS

Dissolution
of the Board:-
25 (1) If at any time the Government are satisfied that:-
(a) The Board has, without reasonable cause o r excuse,
made default in the discharge of its duties or in the
performance of its functions, imposed or entrusted by or
under this Act, or exceeded or abused its power or

(b) Circumstances have so arise that the Board is rendered
unable or may be re ndered 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
dissolution, be discharged, exercised and performed by
such person or authority, as may be specified in the
notification.

Provided that the Gove rnment shall, before dissolving the
Board, give a reasonable opportunity to it to show cause
against the proposed action.

(2) The Government shall, before the expiration of the
13

period of dissolution, reconstitute the board in
accordance with the provisions of section 3

(3) The Government may make such incidental and
consequential provisions as may; appear to them to
be necessary for giving effect to the provisions of this
section.

(4) Any notification issued or order made by the
Government under this section shall not be
questioned in any civil court.

(5) On the Board being dissolved under sub- section (1)

(i) All funds and other properties vested in the
Board shall vest in the Government, and

(ii) All rights, obligations and liabilities (including any
liabilities under any contract ) legally subsisting
and enforceable by or against the Board shall
become the rights, obligations and liabilities of
the Government.

26 (1) In each year on or before such date as may be fix ed by the
Government in this behalf, the board shall in such form as may
be prescribed, prepare and forward to the Government.

Preparation
and
submission
of annual
programmes
and
establishment
schedules:-

(a) a programme for the promotion of Khadi and Village
Industries and

(b) A schedule of the staff of officers and servants employed
and to be employed during the next year.

(2) (a) Particulars of the scheme which the Board proposes to
execute whether in part or in whole during the next ye ar.

The
programme
shall
contain:-

(b) Particulars of any work which the Board proposes to
execute or any undertaking which the Board proposes to
organize during the next year for the purposes of
performing its functions under this Act, and

(3) The Government may approve and sanction the programme and
14

the schedule of the staff of officers and servants forwarded to
them under sub - section (1) with such modifications as they may
deem fit.
(4) The Board may submit a supplementary budget and
supplementary programme for the sanction of the Government
in such form and before such date as the Government may
prescribe and the provisions of sections is 18 and sub – sections
(1) to (3) sha ll respectively apply to such supplementary budget
and programme.

Members,
Officers and
other servants
of the board to
be public
servants:

27.

The members, officers and other servants of the Board shall be
deemed to the public servants within the mea ning of section 21 of
the Indian Penal Code (Central Act XLV OF 1860).

Protection for
acts done in
good faith:-
28. (1) No suit, prosecution or other legal proceeding shall lie
against the president, secretary or members or any person in
the employment o f the Board for anything which is, in good
faith done or intended to be done in pursuance of this Act.

(2) Save as otherwise expressly provided in this Act, no suit or
other legal proceedings shall lie against the board for any
damage caused or likely to be caused by anything which is in
good faith done, or purported to be done, under this Act.

Power to make
rules:-

29. (1) The Government may, by notification, make rules to give
effect to the provisions of this Act.
(2) In particular and without p rejudice to the generality of the
foregoing power, such rules may provide 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 filling causa l
vacancies among, the members of the Board and the
terms and conditions of service of the vice –president,
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;

procedure to be followed for removing a member who
is or becomes subject to any disqualification;

(d) the procedure to be followed in the performance of
functions by members of the Board;

(e) the powers and duties to be exercise d and discharged
by the Secretary;

(f) The date by which and the form in which the budget
and the supplementary budget shall be prepared and
submitted in each year under section 18 a nd
sub-section (4) of section 26;

(g) the procedure to be followed for placing the board in
possession of funds;

(h) the procedure to be followed and the conditions to be
observed in borrowing money and in granting loans;

(i) the conditions subject to which and the mode in which
contracts may be entered into by or on behalf of the
Board;

(j) the form and manner in which the accounts of the board
shall be maintained under section 20;

(k) the form and manner in which the r eturns, reports or
statement shall be maintained under section 24 and

(l) any other matter which has to be , or may be,
prescribed.

(3) All rules made and all notification issued under this Act shall,
as soon as possible after they are made or issued, be placed
on the table of both the House of the Legislature and shall be
subject to such modification by way of amendment or repeal
as the Legislature may make either the same session or in
the next session;

30. (1) The Board may with the previou s sanction of the
Government, by notification make regulation not inconsistent
with this Act and the rules made there under, for enabling it
to perform its functions under this Act.

Power to
make
regulations:-

(2) In particular and without prejudice t o the generality of the foregoing
16

power, such regulations may provide for all or any of the following
matters, namely:-
(a) the terms and conditions of appointment and servants of the
Board other than the secretary including the payment of
travelling an d daily allowances in respect to 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 quo rum necessary for the transaction of such
business at a meeting;

(d) the maintenance of minutes of meetings of the Board and the
transmission of copies of there to the Government.

(e) the persons by whom and the manner in which payments
deposits and investments may be made on behalf of the
Board.

(f) the custody of mon ey required for the current expenditure of
the board and investment of money not so required;

(h) the maintenance of accounts

(3) The Government may, by notification, rescind regulation made
under this section and there upon, the regulation shall cease to
have effect.

Operation of
other laws not
affected:-
31. The provisions of this Act shall be in addition to, and not in
derogation of, any other law for the time being in force relating to
Khadi and Village Industries.

Tamil Nadu Khadi & Village Industries Board – Rules -1960

Acts – Tamil Nadu Khadi and V illage Industries Board Act – 1959
(Act 18 of 1959) – Rules – Issued.

(i) G.O.Ms.No.2782 Food & Agriculture dt: 11.8.1960
(ii) G.O.Ms.No.298 Food & Agriculture dt: 29.2.1963
(iii) G.O.Ms.No.1266 Food & Agriculture dt: 16.4.1964

NOTIFICATION
17

In exercise of the powers conferred by sub -sections (1) and (2) of section 29
read with sections 8 and 9 of the Madras Khadi and Village Industries Board A ct, 1959
(Madras Act 18 of 1959) the Government of Madras hereby make, the following rules.
1. Short title: These rules may be called the Madras Khadi and Village
Industries Board Rules 1960.

2. Definition: In these rules, unless the context otherwise requires.
“Act means the Madras Khadi and Village Industries Board Act, 1959
(Madras Act 18 of 1959)

3. Term of Office: - (1) A member shall hold office for a period of one year
from the date of publication of the notification of his appointment in the
Tamil Nadu Government Gazette.

(G.O.Ms.No.27, Handlooms, Ha ndicrafts, Textiles and Khadi (B 2)
Department, dated:26.2.1988)

(2) The Secretary shall hold office for such period as may be decided by
the Board subject to the approval of the Government.

(3) Term of office: - A vice President shall hold office for a period of one
year from the date of his election or till the date of expiry of his terms
of membership whichever is earliest.

(G.O.Ms.No.298, Ha ndicrafts, Textiles and Khadi (B 2) Department,
dated:1.10.1986)

(4) The Secretary and any member are eligible for re-appointment.

4. Disqualification for membership: (1) A person shall be disqualified for
appointment as a member if on the date of appointment such person:-

(a) is less than twenty one year of age: or

(b) is of unsound mind; or

(d) has been sentenced by a Criminal Court for an offence involving
delinquency, such sentence not having been reserved; or

(e) has, on any previous occasion, been removed from the office of
18

members or has been removed by orde r of a competent court from
any position of trust either for mismanagement or corruption; or

(f) has any financial interest in any subsisting contract with or in any
work being done for the Board except as a shareholder (other than a
Director or Managing agent) in a Company as defined in Section 3 of
the Companies Act,1956, provided that where he is share holder, he
will disclose to the government, the nature and extent of shares held
by him in such a company.

(2) A member shall cease to hold his office, if he:-

(a) is sentenced by a Criminal Court for an offence involving moral
delinquency such sentence not been reserved or

(b) Becomes of unsound mind; or

(d) Has failed wi thout excuse sufficient in the opinion of the Board to
attend three consecutive meetings of the Board.

5. Removal from Board: (Omitted G.O.No.115,Dt:30.3.76)

6. Disqualification for appointment as Secretary:-

When a person who is neither a member no t an officer of the
Government is appointed as Secretary, the disqualification specified
in rule 4 (2) shall mutatis mutandis apply to such a person.

7. Filling up to Casual Vacancies:- (Omitted G.O.Ms.No.115,Dt:30.3.76)

8. Payment of allowances:-
(1) For purpose of travelling and other allowances of the members
the Board shall be deemed to be a First Class Committee
constituted by the Government and the members shall be paid
the allowances out of the funds of the Board

(2) Where person, who is not an officer of the Government, is
appointed as secretary of the Board, he shall be entitled to draw
such pay and allowances from out of the funds of the Board, as
the Government may by order, determine.

9. Power and duties of the Secretary of the Board.
19

(1) The Secretary shall work under the general control of the President
who may delegate to him such powers and duties as he may consider
necessary, including the following:-

(i) converting of the meetings of the Board under the direction of
the President;

(ii) drawing up the agenda for each meeting under the President’s
directions and communicating it to each member with the notice
of the meeting.

(iii) attending the meetings of the Board and participating in all
discussions.

(iv) recording, maintaining and compiling the decisions of the
meetings of the Board in an appropriate manner subject to the
approval of the president, communicating the minutes to the
members of the Board and placing them before the Board at its
subsequent meeting for confirmation.

(v) furnishing to the Government all reports including annual reports
and returns and necessary documents required under the act or
the rules;

(vi) Preparations of the annual Budget of the Board is consultation
with the Standing Finance Committee;

(vii) Maintenance of the minutes of the meeting of the Board

(2) The secretary shall keep a record of the members of the Board and
their addresses. If a member changes his address he shall notify his
new address at the earlie st opportunity to the secretary, who shall
there upon entre his new address in the record. The secretary, shall
make available if required, papers connected with the items on the
agenda during the meeting of the Board and shall also make
available, if req uired information relating to the affairs of the Board to
any of the members provided that the secretary shall bring this to the
notice of the President.

(3) Subject to such delegation as may be made from time under the act
or under these rules the Secretary shall.

(a) cause all important papers and matter to be presented to the Board
20

as early as Practicable.

(b) issued directions as to the method of carrying out the decision of the
Board.

(c) draw from its fund the pay and allowances of the staff of the office of
the Board and the Travelling Allowance of the members of Board;

(d) maintain or cause to be maintained an account of the receipts and
expenditure of the Board; and

(e) present a draft annual report of the working of the Board f or its
approval and submit the report as approved by it to the Government

4. The Secretary shall exercise administrative control over all
departments and officers of the Board, subject to such restriction as
may be imposed from time to time by the President.

5. Subject to such monetary limits as may be prescribed by the standing
Finance Committee, the Secretary may sanction expenditure on
contingencies, supplies and services required for the working of the
office of the Board.

10. REPORTS:

.4 The annual r eport specified in section 24(2) should be submitted by
the Board to the Government not later than the is “ May of the
following year and it shall be in such form as the Government may
from time to time direct and contain particulars, (amongs ot hers, in
respect of the following namely):-

i budget estimate and the actual of expenditure

ii production and sale of Khadi both tradition and Amber

iii production and sale of products of Village Industries

iv production of charkhas and other implements

v employment statistics for each Industry, and

vi training of personnel

TAMILNADU KHADI AND VILLAGE INDUSTRIES BOARD
Act 1959 (Act of 1959) Regulations
(ABSTRACT)

ACTS & REGULATIONS:- The Tamil Nadu Khadi and Village Industries Board
Act 1959 (Act of 1959) Regulations Issued:-

PROCEEDINGS MS.NO.613 Dated:6.9.1962
Read:
From the Secretary to Government, Food and Agriculture Department letter
No.108153/C.IV/60-16,dt:12.2.62.
PROCEEDINGS:
The following notification shall be published in the Fort St.George Gazette;
NOTIFICATION
In exercise of the powers conferred by Section 3 0 of Tamil Nadu Khadi and
Village Industries Board Act, 1959 (Tamil Nadu Act 18 of 1959 ) the State Khadi and
Village Industries Board hereby makes the following regulations:-
1. SHORT TITLE:
The regulations may be called the Tamil Nadu state Khadi and Village Industries
Board Regulations, 1961.

2. DEFINITIONS:

In these regulations, unless the context otherwise requires:-

(a) ‘act’ means the Tamil Nadu Khadi and Village Industries Board Act, 1959
(Tamil Nadu Act 18 of 1959)

(b) ‘Agenda’ means the list of business purpose to be transacted at a meeting
of the Board.

(d) ‘Presiding authority’ means the President or the Vice President or, in their
absence, any member chosen t o preside over any meeting of the Board;
22

and

(e) ‘Vice – President’ means the Vice- President of the Board elected under
clause (c) of Sub Section 92) of Section 3 of the Act;

3. MEETINGS:

The time and place of each meeting of the Board, shall be s uch as may be fixed
by the President.

4. NOTICE OF THE MEETING:

Ten clear day’s notice of every meeting shall be given to all the members, The
notice under these regulations may waived if the date, time and place of the
meeting have already been fixed at the previous meeting or it the President
considers it necessary to hold special meetings for the transaction of emergent
business.

5. CIRCULATION OF AGENDA:

A copy of the agenda with notes if any, shall be circulated to all members of the
Board before the date fixed for the meeting except where a special meeting has
been called by the President for the transaction of emergent business.

6. SAVING:

Not with standing anything contained in regulations 5, any matter not included in
the agenda for a meeting for the Board on which the decision of the Board is
urgently required may with the approval of the Presiding authority, be placed
before the meeting and the Board may consider such matter.

7. VALIDATION OF PROCEEDINGS:

Non receipt of notice or agenda of a meeting by any member shall not invalidate
the proceedings or any resolution passed at such meeting.

8. MOVING OF PROPOSITIONS:

Any member who desired to move any proposition shall send a notice of such
proposition together with a brief note setting out the reasons in support of the
proposition to the Secretary atleast five days in advance of the meeting so as to
enable the propositions being included in the agenda.

Provided that the President authority may, at his discr etion, allow such
23

proposition to be moved in a meeting despite non -receipt of notice of the
proposition in time for inclusion in the agenda.

9. ORDER OF BUSINESS:

The order in which any business may be transacted or any time taken up for
consideration at any meeting shall be determined by the presiding authority.

10. QUORUM:

The Quorum at every meeting shall be one third of the total number of members
of the Board.

11. PROCEDURE WHEN THERE IS NO QUORUM:

(i) If at the time fixed the meeting, the numbers of member present is not
equal to the quorum required therefore under regulation (10) the President
shall wait for 30 minutes.

(ii) If at the expiry of the Period specified in Clause (i) the number of members
present is not equal to the quor um required under regulation 10 the
President shall adjourn the meeting.

12. ADJOURNMENT:

(i) If the Board so resolve the President may at any time adjourn any
meeting to any future day or to any hour of the same day and if
practicable an intimation i n that behalf shall be given to all members who
were not present at the meeting.

(ii) Provided that no business left unfinished shall be transacted at any
adjourned meeting and such other business of which notice was given to
the members in accordance with the provisions of these regulations.

13. (A) PROCEDURE IN THE NEXT MEETING:

When a meeting is adjourned to a future day any item on the agenda
under discussion or remaining to be discussed at the time of such

Adjournment shall unless the President directs otherwise have the same
precedence which it had in the agenda immediately before such adjournment of
24

the business of the adjourned meeting.

(b) Any proposal on which the decision of the Board is urg ently required may be
circulated to the Members and if approved by not less than two thirds of the total
numbers of members of the Board may be deemed to have been passed as a
resolution at a meeting of the Board duty concerned. Such decision shall be
placed before the next meeting of the Board for ratification.

14. EVIDENCE

The Board may take evidence or hear any person in the matters concerning the
affairs of the Board.

15. POWER TO CORRECT OR ALTER MINUTES

The presiding authority shall have th e power to correct any obvious errors and
to make drafting alternations in the minutes of the meeting provided that such
corrections’ or alterations do not change the sense of the decision taken at the
meeting.

16. POWERS AND DUTIES OF THE STANDING FINANCE COMMITTEE

The Standing Finance Committee shall deal with all applications to the Board
for sanction of financial assistance and all sanctions pertaining to the Budget
and other financial matter of the Board which are not within the power of any
officer under the control of the Board and any other matter assigned by the
Board the functions of the Standing Finance Committee will be governed as
follows:-

(i) Term of office and conditions for reappointment of the members of the
Standing Finance Committee.
The members of the Standing Finance Committee shall hold office so long
as they continue to be members of the Board and shall on the expiry of
their terms of office be eligible for reappointment if they are reappointment
as members of the Board.

(ii) Resignation of office by members:-
Any member of the Committee may resign his office at any time and such
resignation shall take effect from the date from which it is accepted by the
Board.

(iii) Meeting of the committee: - The committed shall mee t at least once a
25

month for the purpose of discharging its functions. It shall be the duty of
the Secretary of the Board with the approval of the Chairman of the
Committee to call, when ever necessary, meetings of the Committee and
to give the members the reof not less than seven day’s notice in writing of
the date, time and place of the proposed meetings provided however, that
no further notice need be given of an adjourned meeting. The Chairman
may reduce the prescribed period of notice whenever it is ne cessary to
call for a meeting of the Committee to consider any emergent business of
situation.

(iv) Agenda:- The Secretary shall send t o each members sufficiently in
advance, a copy of the agenda for the meeting together with the notices, if
any, on the various subjects includes therein.

(v) Special meeting on requisition by members:-

The Secretary shall also with the concurrence of the Chairman call for
special meetings of the Committee on written requisitions signed by not
less two members of the Committee.

(vi) Meeting to consider Budget: - There shall be an annual meeting of the
Committee to consider the Budget of the Board. The Committee shall also
meet to consider any supplementary Budget of the Board.

(vii) place of meeting: - Unless the Board, otherwise directs all meetings of the
Committee shall be held at the head quarters of the Board.

(viii) Presiding Authority:- The Chairman shall preside at every meeting. In his
absence, the members present shall elect a Chairman from among
themselves.

(ix) Quorum:- (a) Quorum for a meeting of the Committee shall be 3 including
Chairman.

(b) If, there is not Quorum within 30 minutes of the time appointed for
the meeting., no meeting shall be held and the Chairman may than
and there adjourn meeting to a specific date. No quorum shall be
necessary fo

Excerpt shown. Open the full act in Lexace.

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