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The Telangana Khadi and Village Industries Board Act, 1958.

Telangana · state statute
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THE TELANGANA KHADI AND VILLAGE INDUSTRIES BOARD 
ACT, 1958. 
(ACT No. IV OF 1959.) 
ARRANGEMENT OF SECTIONS 
Sections 
 CHAPTER I. 
PRELIMINARY. 
1. Short title, extent and commencement. 
2. Definitions. 
 CHAPTER II 
THE BOARD. 
3. Establishment and Constitution of the Board. 
4. Omitted. 
5. Term of office of the Chairman, Vice-Chairman and 
non-official members and their resignation. 
6. Temporary association of persons with the Board 
for particular purposes. 
6-A. Omitted. 
7. Meeting of the Board. 
8. Vacancy, etc., not to invalidate acts and 
proceedings of the Board. 
9. Terms and conditions of service of Chairman and 
the Vice-Chairman etc. 
10. Officers and servants of the Board. 
 CHAPTER III 
FUNCTIONS OF THE BOARD. 
11. Functions of the Board. 
2  [Act No. IV of 1959] 
11A. General powers of the Board. 
12. Standing Committee of the Board. 
13. Preparation, submission and sanction of Annual 
Programme. 
14. Power of Government to give directions. 
15. Dissolution of the Board. 
 CHAPTER IV 
FINANCE, ACCOUNTS AND AUDIT. 
16. Funds of the Board. 
17. Application of fund and property. 
18. Subventions and grants to the Board. 
19. Recovery of arrears. 
20. Budget. 
21. Supplementary Budget. 
22. Annual Report. 
23. Accounts and Audit. 
24. Returns and Reports. 
 CHAPTER V 
MISCELLANEOUS. 
25. Transitional provisions. 
26. Members, officers and employees of the Board to 
be public servants. 
27. Bar of certain proceedings. 
27A. Revision. 
28. Power to make rules. 
29. Power to make regulations. 
30. Repeal. 
 
THE TELANGANA KHADI AND VILLAGE INDUSTRIES 
BOARD ACT, 1958.1 
 
ACT No. IV OF 1959. 
 
CHAPTER I. 
PRELIMINARY. 
 
1. (1) This Act may be called the 2Telangana Khadi and 
Village Industries Board Act, 1958. 
 
 (2) It extends to the whole of the State. 
 
 (3) It shall be deemed to have come into force on the 
third November, 1958 in the areas of the State which 
immediately before the 1st November, 1956 were comprised 
in the State of Telangana, and shall come into force in the 
remaining areas of the State on the date appointed by the 
Government by a notification such date not being earlier 
than the date on which an order issued under s ub-section 
(1) of section 4 of the Inter -State Corporations Act, 1957 
(Central Act 38 of 1957), takes effect. 
 
2. In this Act, unless the context otherwise requires,- 
 
 (i) ‘Board’ means the 2Telangana Khadi and Village 
Industries Board constituted under section 3; 
 
                                                           
1. The Andhra Pradesh Khadi and Village Industries Board Act, 1958 in 
force in the combined State, as on 02.06.2014, has been adapted to the 
State of Telangana, under section 101 of the Andhra Pradesh 
Reorganisation Act, 2014 (Central Act 6 of 2014) vide. the Notification 
issued in G.O.Ms.No.72, Industries and Commerce (FP&MSME) 
Department, dated 30.09.2015. 
2. Substituted by G.O.Ms.No.72, Industries and Commerce (FP & 
MSME) Department, dated 30.09.2015. 
Short title, extent 
and 
commencement. 
 
Definitions. 
2  [Act No. IV of 1959] 
 3[(ii) ‘Commission’ means the Khadi and Village 
Industries Commission established under s ection 4 of the 
Khadi & Village Industries Commission Act , 1956, (Central 
Act 61 of 1956);] 
 
 (iii) ‘Chairman’, 4[xxx] 5[‘Vice-Chairman’], ‘Chief 
Executive Officer’ and ‘Member’  means respectively the 
Chairman, 4[xxx], 5[Vice-Chairman] and Chief Executive 
Officer and Member of the Board; 
 
 6[(iii-a) [xxx]] 
 
 (iv) ‘Government’ means the State Government of 
7Telangana; 
 
 (v) ‘Khadi’ means any cloth woven on handlooms in 
India from cotton, silk or woollen yarn hand spun in India or 
from a mixture of any two or all of such yarns; 
 
 (vi) ‘notification’ means a notification published in the 
7Telangana Gazette; 
 
 (vii) ‘prescribed’ means prescribed by rules made 
under this Act; 
 
 (viii) ‘regulations’ means regulations made by the 
Board under this Act; 
 
 (ix) ‘State’ means the State of 7Telangana; 
 
                                                           
3. Substituted by Act No.5 of 1962. 
4. Omitted (Vice-Chairman) by Act No.5 of 1962. 
5. Substituted for 'Secretary' by Act No.30 of 1981. 
6. Clause (iii -a) inserted by Act No.5 of 1962 omitted by Act No.30 of 
1981. 
7. Substituted by G.O.Ms.No.72, Industries and Commerce (FP & 
MSME) Department, dated 30.09.2015.  
[Act No. IV of 1959]  3 
 (x) ‘Village Industries’ means all or any of the industries 
which f orm the normal occupation, whether whole time or 
part time, of any class of the rural population of the State 
and includes any other industry which the Government may, 
of their own motion or on the recommendation of the Board, 
declare by notification to be a village indu stry for the 
purposes of this Act; but does not include any of the 
industries specified in the Schedule to the Industries 
(Development and Regulation) Act, 1951  (Central Act 65 of 
1951). 
 
CHAPTER II 
THE BOARD. 
 
3. (1) With effect from such date as the Government may, 
by notification, appoint in this behalf, there shall be 
established a Board to be called the 8Telangana Khadi and 
Village Industries Board with its Head Quarters in the City of 
Hyderabad which shall be a body corporate having 
perpetual succession and a common seal, with power to 
acquire, hold and dispose of property to do all things 
incidental to and necessary for the purposes of this Act and 
to contract, and may by the said name sue and be sued. 
 
 9[(2) The Board shall consist of the following members, 
namely:- 
 
  (i) five non -official persons to be appointed by the 
Government who have shown an active interest in the 
production and development of Khadi or in the development 
of Village Industries  of whom one member shall be 
nominated as the Chairman and another member  shall be 
nominated as the Vice-Chairman by the Government; 
                                                           
8. Substituted by G.O.Ms.No.72, Industries and Commerce (FP & 
MSME) Department, dated 30.09.2015. 
9. Sub-sections (2), (3) and (4) substituted by Act No.33 of 1997. 
Establishment 
and Constitution 
of the Board. 
4  [Act No. IV of 1959] 
  (ii) t he Additional Director of Industries, in -charge of 
Khadi and Village Industries, Member Ex-Officio; 
 
  (iii) t he Joint Secretary or the Deputy Secretary to 
Government in the Industries and Commerce Department, 
in-charge of Khadi and Village Industries, Member Ex-officio; 
 
  (iv) t he Joint Secretary or  the Deputy Secretar y to 
Government in the Finance and Planning (FW) Department, 
in-charge of Khadi and Village Industries, Member Ex-officio; 
and 
 
  (v) the Chief Executive Officer, Member Ex-officio. 
 
 (3) The Chairman shall exercise such power s and 
perform such functions as m ay be prescribed or as may be 
delegated to him by the Board. 
 
 (4) The Vice -Chairman shall exercise such powers o r 
perform such functions as may be prescribed or as may be 
delegated to him by the Chairman or the Board.] 
 
 10[(5) The Chief Executive Officer shall be responsible 
for the conduct of and procedure at the meeting s of the 
Board and for implementing the resolutions of the Board.] 
 
11[4.[xxx]] 
 
5. 12[(1)] 13[The Chairman, Vice -Chairman and the non 
official members of the Board] shall hold office for a period 
of three years from the date of his appointment, but may 
resign his office earlier by giving notice in writing to the 
                                                           
10. Substituted by Act No.30 of 1981. 
11. Omitted by Act No.30 of 1981. 
12. Existing section 5 renumbered as sub -section (1) by Act No.30 of 
1981. 
13. Substituted including in the marginal heading by Act No.33 of 1997. 
Term of office of 
the Chairman, 
Vice-Chairman 
and non-official 
members and 
their resignation. 
[Act No. IV of 1959]  5 
Government, and shall cease to be a Member on the 
resignation being accepted by the Government. 
 
 14[(2) Notwithstanding anything in sub -section (1) , the 
Government may, reduce the term  of office of 15[Chairman, 
Vice-Chairman or any member] before the expiry of his term 
of office, without giving any notice to such member , and 
appoint any other person in his place.] 
 
6. (1) The Board may associate with itself in such m anner 
and for such purposes as may be determined by regulations 
any persons 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 may , by notification , 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. 
 
16[6-A. [xxx]] 
 
7. (1) The Board shall meet at such times and places and 
shall, subject to the provisions of sub -sections (2) and (3) 
observe such rules of procedure in regard to transaction of 
business at its meetings (including the quorum at meetings) 
as may be provided by regulations: 
 
                                                           
14. Added by Act No.30 of 1981. 
15. Substituted by Act No.33 of 1997. 
16. Omitted by Act No.30 of 1981. 
Temporary 
association of 
persons with the 
Board for 
particular 
purposes. 
Meeting of the 
Board. 
6  [Act No. IV of 1959] 
 Provided that the board shall meet at least once in two 
months. 
 
 17[(2) The Chairman , or in his absence the Vice -
Chairman, and in the absence of both t he Chairman and 
Vice-Chairman, any member of the Board chosen by the 
members present among themselves, shall preside at a 
meeting of the Board.] 
 
 (3) All question s at a meeting of the Board shall be 
decided by a majority of the votes of the members present 
and voting and in the cas e of an equality of votes, the 
person presiding at the meeting shall have a second or 
casting vote. 
 
 (4) 17[A copy of the agenda for every meeting as well as 
the proceedings of the meeting] of the Board shall be 
forwarded to the Government in the Industries Department. 
 
8. No Act or proceedings of the Board shall be invalid by 
reason only of the e xistence of any vacancy amongst its 
members or any defect in the constitution thereof. 
 
 18[xxx] 
 
17[9. The conditions of service of the 19[Chairman and the 
Vice-Chairman] and the t erms and conditions of service of 
other members of the Board , including the salaries or 
honoraria and the allowances to be paid to them , shall be 
such as may be prescribed.] 
 
 
                                                           
17. Substituted by Act No.30 of 1981. 
18. Proviso and the Explanation omitted by Act No.30 of 1981. 
19. Substituted including in the marginal heading by Act No.33 of 1997. 
Vacancy etc., not 
to invalidate acts 
and proceedings 
of the Board. 
Terms and 
conditions of 
service of 
Chairman and the 
Vice-Chairman 
etc. 
[Act No. IV of 1959]  7 
20[10. (1) The Government shall appoint the Chief Executive 
Officer, the Financial Adviser and Chief Accounts Officer and 
the Deputy Chief Executive Officer , and other persons to fill 
the posts carrying equivalent scales of pay to those 
aforesaid, either on deputation or otherwise. 
 
 (2) The Chief Executive Officer shall be the principal 
Administrative Officer of the Board and 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 Board 
or by the Chairman and shall be directly responsible for the 
due fulfilment of the purposes of this Act. 
 
 (3) Subject to such rules as may be made by  the 
Government in this behalf, the Board may , with the prior 
sanction of the Government, appoint such other officers and 
servants as it may consider necessary for the efficient 
performance of its functions. All the officers  and servants of 
the Board shall  be subordinate to the Chief Executive 
Officer.] 
 
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 of works for the d evelopment of 
Khadi Village Industries. 
 
 (2) In particular and without prejudice to the generality 
of foregoing power, the Board may take  such steps as it 
may think fit- 
 
  (a) to plan and organis e the training of persons 
engaged in the production of khadi or in village industries; 
                                                           
20. Substituted with marginal heading by Act No.30 of 1981. 
Officers and 
servants of the 
Board. 
Functions of the 
Board. 
8  [Act No. IV of 1959] 
  (b) to build up a reserve of raw materials and 
implements and to supply t hem to persons engaged in the 
production of khadi or in v illage industries at such 
economical rates as may be suita ble in the opinion of the 
Board; 
 
  (c) to provide for the s ale and marketing of k hadi or 
of products of village industries; 
 
  (d) to encourage and promote research in the 
technique of production of khadi or in the development of 
village industries , or to provide facilities for a study of the 
problems relating to khadi or village industries; 
 
  (e) to maintain or assist in the maintena nce of 
institutions for t he development of k hadi or village 
industries; 
 
  (f) t o undertake, assist or encourage the production 
of khadi or the development of village industries; 
 
  (g) to promote and encourage co -operative efforts 
among manufacturers of khadi and persons engaged in 
village i ndustries and organi se Co -operative societies for 
khadi and village industries; 
 
  (h) to help the people by providing them with work in 
their homes and to give them monetary help; 
 
  (i) to grant loans and other assistance to institutions 
carrying on the khadi or other village i ndustry from bulk 
allotment which may be made to it by the Government in 
this behalf subject to such conditions as may be laid down 
by the Government for this purpose; 
 
  (j) to conduct training centres and to train people 
thereat with a view to equipping them with the necessary 
[Act No. IV of 1959]  9 
knowledge for starting or carrying on khadi and v illage 
industries; 
 
  (k) to conduct survey or assess potentialities of 
cottage and village industries and the scope for their 
development with a view a promote such industries for the 
purpose of eliminating unemployment; 
 
  (l) to arr ange for publicity and popularis ation of 
finished products manufactured in the k hadi and village 
industries by op ening stores, shops, emporiums or 
exhibitions and by taking other s imilar measures for the 
purpose; 
 
  (m) to incur expenditure and undertake works in any 
area of the State in which this Act is for the time being in 
force for framing and executing such sch emes as it may 
consider necessary for the purposes of this Act or as may 
be entrusted to it from time to time, by the Government, 
subject to the provisions of this Act  and the rules made 
thereunder; 
 
  (n) for ensuring the genuineness of, and for granting 
certificates to producers of, or dealers in k hadi or  the 
products of any village i ndustry on payment of fees 
according to such scale as may  be provided in the 
regulations; 
 
  (o) to carry out any other matter which may be 
prescribed. 
 
21[11A. The Board shall, for the purpose of carrying out its 
functions under this Act, have the following powers , 
namely:- 
 
                                                           
21. Inserted with marginal heading by Act No.30 of 1981. 
General powers of 
the Board. 
10  [Act No. IV of 1959] 
 (i) to acquire and hold such movable and immovable 
properties as it  deems necessary and to lease , sell or 
otherwise transfer any such property: 
 
 Provided that any lease , sale  or other transfer to any 
person or authority, other than the 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 committee or committees for securing 
the efficient performance of its functions and in particular, 
for ensuring that such functions are performed with due 
regard to the requirements 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 
carrying out the provisions of this Act or as may be 
entrusted to it by the Government; and 
 
 (iv) to enter into any contract and to do all things 
necessary for the purposes of this Act.] 
 
22[12. The Board may constitute a standing finance 
committee consisting of such members as may be 
prescribed. The standing finance committee shall exercise 
such powers and perform such functions relating to the 
finances of the Board, as may be delegated to it by 
regulations made by the Board.] 
 
13. (1) The Board shall, prepare and submit to the 
Government every year before such date as may be 
prescribed a programme of works contai ning prescribed 
particulars of s chemes, undertakings and works which the 
                                                           
22. Substituted with marginal heading by Act No.30 of 1981. 
Standing 
Committee of the 
Board. 
Preparation, 
submission and 
sanction of 
Annual 
Programme. 
[Act No. IV of 1959]  11 
Board proposes to organis e and execute during the next 
ensuing year. 
 
 (2) The Government shall consider such programme 
and may- 
 
  (a) sanction the programme; 
 
  (b) add to , alter or modify the programme and 
sanction the programme so added to , altered or modified, 
or remit the same to the Board for re -consideration and 
submission to the Government with the report of the Board. 
 
 23[(3) [xxx]] 
 
14. In the exercise of 24[their powers ] and in discharge of 
24[their functions] under this Act, 24[the Board and the Chief 
Executive Officer] shall be bound by such directi ons as the 
Government may give 24[to them]: 
 
 25[Provided that any directions given by the 
Government to the Chief Executive Officer immediately 
before the commencement of the Andhra Pradesh Khadi 
and Village Industries Board (Amendment) Act , 1981, shall 
be deemed to have been given under this section.] 
 
26[15. (1) If at any time, the Government are satisfied that- 
 
  (a) t he Board has, without reasonable cause or  
excuse, made default in the discharge of its duties , or in the 
performance of its functions, imposed or entrused by or 
under this Act, or exceeded or abused its powers; or 
 
                                                           
23. Omitted by Act No.30 of 1981. 
24. Substituted by Act No.30 of 1981. 
25. Added by Act No.30 of 1981. 
26. Substituted with marginal heading by Act No.30 of 1981. 
Power of 
Government to 
give directions. 
Dissolution of the 
Board. 
12  [Act No. IV of 1959] 
  (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 dissolution, be 
discharged, exercised and performed by such person or 
authority, as may be specified in the notification: 
 
  Provided that the Government may , for reasons to be 
recorded in writing, hold that it shall not be necessary to 
give the Board any oppo rtunity of making r epresentation on 
the action proposed. 
 
 (2) The Government shall, before the expiration of the 
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 mad e by the 
Government under this s ection 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 Boa rd 
shall vest in the Government; and 
 
[Act No. IV of 1959]  13 
  (ii) all liabilities, legally subsisting and enforceable 
against the Board shall be enforceable against the 
Government to the extent of the funds and properties vested 
in the Government under clause (i).] 
 
CHAPTER IV 
FINANCE, ACCOUNTS AND AUDIT. 
 
16. (1) The Board shall have its own fund and all receipts 
of the Board shall be credited thereto and all payments by 
the Boar d shall be made theref rom. The fund shall  be 
operated by an o fficer or officers authorised by the Board, 
subject to the conditions prescribed. 
 
 (2) The Board may accept grants, subventions, 
donations and gifts and borrow any amount from the State 
or the Central Government , or the 27[Commission] or a local 
authority 28[or a commercial bank or a co-operative 
financing society] for all or any of the purposes of this Act. 
 
 (3) The previous sanction of the Government shall be 
obtained for receiving any loan or borrowing any amount 
under sub-section (2): 
 
 Provided that the p rovisions of this  sub-section shall 
not apply when the Board receives any loan or borrows any 
amount from the State Government or the 27[Commission]. 
 
 (4) The sums borrowed from the Government (State or 
Central) or the 27[Commission] shall be a cha rge on the 
assets of the Board. 
 
                                                           
27. Substituted for "Central Board" by Act No.5 of 1962. 
28. Substituted by Act No.30 of 1981. 
Funds of the 
Board. 
14  [Act No. IV of 1959] 
 (5) All moneys belonging to the fund  of the Board shall 
be deposited in such Bank and Treasury  or be invested in 
such securities as may be approved by the Government. 
 
17. The property, fund and other assets of the B oard shall 
be held and applied by it s ubject to the provisions, and for 
the purpose of this Act. 
 
18. (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 
determine in each case. 
 
 (2) The Board may ask for specific allocations of funds 
from the funds of the 29[Commission] to be spent on 
schemes undertaken by the Board subj ect to the a pproval 
of the 29[Commission]. 
 
19. (1) Where any loan or advance granted by the Board to 
any institution or person is not repaid befor e the date 
specified therefor, 30[or where any othe r amount is due to 
the Board fro m any person or institution either under a 
contract or otherwise], the Board may with out prejudice to 
any other mode  of recover y, issue a certificate for the 
amount due to the Collector of the District concerned , and 
the Collector shall proceed to recover the amount in the 
same manner as an arrear of land revenue: 
 
 31[Provided that no certificate under this sub -section 
shall be issued unless the defaulter has been given an 
opportunity of making a representation ag ainst the action 
proposed: 
 
                                                           
29. Substituted for "Central Board" by Act No.5 of 1962. 
30. Inserted by Act No.30 of 1981. 
31. Added by Act No.30 of 1981. 
Application of 
fund and 
property. 
Subventions and 
grants to the 
Board. 
Recovery of 
arrears. 
[Act No. IV of 1959]  15 
 Provided further that it shall be lawful for the B oard to 
issue succession c ertificates under this sub -section to the 
Collector for the realisation of its d ues in full, if it is satisfied 
that the default er has come into possession of a ssets from 
which it can recover its dues.] 
 
 (2) The Board may write off irrecoverable losses with 
the previous sanction of the Government or the 
32[Commission] as the case may be 33[subject to such limits 
as may be laid down in the regulations.] 
 
20. (1) Th e Board shall prepare in such f orm as may be 
prescribed, a budget in respect of the financial year next 
ensuing showing the estimates, receipts and expenditure on 
capital and revenue accounts according to the annual 
programme referred to in secti on 13; and the Schedule of 
the s tock and sufficient number of copies of such budget 
shall be forwarded to the Government before the prescribed 
date. 
 
 (2) The Government may sanction t he budget with 
such modifications as they may deem fit. 
 
 (3) The  Board shall be competent to  reappropriate 
such amount as may be necessary from one sch eme to 
another or within sub-heads and minor heads, subject to the 
condition that the cost of any scheme  shall not exceed the 
amount originally sanctioned by the Government by more 
that one third without approval of the Government. 
 
21. The Board may forward a supplementary budget for 
the sanction of the Government in  such form and before 
such date as may be prescribed and the p rovisions of  
                                                           
32. Substituted for "Central Board" by Act No.5 of 1962. 
33. Inserted by Act No.30 of 1981. 
Budget. 
Supplementary 
Budget. 
16  [Act No. IV of 1959] 
sub-sections (2) and (3) of section 20 sh all apply to such 
supplemental budget. 
 
22. (1) The Board shall prepare in such form and at such 
time as may be prescribed a n annual report giving a true 
and full account of its activities during the previous year and 
sufficient number of copies thereof shall be forwarded to the 
Government; 
 
 (2) The Government shall on receipt of the annua l 
report under sub-section (1) cause a copy of the same to be 
laid on the table of the Legislature of the State. 
 
23. (1) The Board shall maintain such books of account 
and other books in relation to the account, in such form, and 
in such manner as may be prescribed. 
 
 (2) The accounts of the Board shall be audited, at such 
time and in such man ner as may be prescribed, by a 
chartered accountant or by such person  as the Government 
may appoint in this behalf. 
 
 (3) As soon as the a ccounts of the Board are audited, 
the Board shall send, in such manner as may be prescribed 
a copy there of together with a copy of the report of the 
auditor relating thereto, to the Government. 
 
24. The Board shall furnish to the Government such 
returns, accounts and other information with respect to its 
fund or its activities as the Government may require. 
 
CHAPTER V 
MISCELLANEOUS. 
 
25. All debts or expenditure incurred , all contracts entered 
into, and all matters and things done, by the State Khadi 
and Village Industries Board established under 
Annual Report. 
Accounts and 
Audit. 
Returns and 
Reports. 
Transitional 
provisions. 
[Act No. IV of 1959]  17 
G.O.Ms.No.1216 Home (NES), dated the 19th July, 1954 , 
upto the date of the establishment of the Board in 
accordance with the pro visions of th is Act shall be deemed 
to have been incurred, entered into or done by the Board, 
and all suits and legal proceedings instituted or which may 
be instituted by or against the State Khadi and Village 
Industries Board aforesaid shall be continued or instituted 
by or against the Board. 
 
26. All m embers, officers and employees of the Board 
when acting or purporting to act in pursuance of any of the 
provisions of this Act shall be deemed to be public servants 
within the meaning of section 21 of the Indian Penal Code  
(Central Act 45 of 1860). 
 
27. (1) No suit, prosecution or other legal proceedings 
shall lie against any person in the employment of the Board 
for anything which is in good faith done or p urported to be 
done under this Act. 
 
 (2) Save as otherwise 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 in good 
faith done or purported to be done under this Act. 
 
34[27A. (1) The Government may, either suo motu or on 
application, call for and examine the record of the Board in 
respect of any decision or proceeding taken or order 
passed under this Act to satisfy themselves as to the 
correctness or regularity or legality or propriety  of such 
decision or proceeding  or ord er taken or passed and if in 
any case it appears to the Government that such decision, 
proceeding or order should be modified, annulled, reversed 
or remitted for reconsideration, they may pass an order 
accordingly: 
                                                           
34. Inserted with marginal heading by Act No.30 of 1981. 
Members, officers 
and employees of 
the Board to be 
public servants. 
Bar of certain 
proceedings. 
Revision. 
18  [Act No. IV of 1959] 
 Provided that every application to the Government for 
the exercise of the power under this section shall be 
preferred within ninety days from the date on which the 
decision, proceeding or order to which an application 
relates was communicated to the applicant: 
 
 Provided further that the Govern ment shall not pass 
any order adversely affecting any person unless such 
person has been given an opportunity of making his 
representation. 
 
 (2) The Government may stay the execution of any 
such decision, proceeding or order pending the exercise of 
their powers under sub-section (1) in respect thereof.] 
 
28. (1) The Government may, by notification , make rules 
for carrying out all or any of the purposes of this Act. 
 
 (2) In particular, and without prejudice to the generality 
of the foregoing power, such rules may provide for all or any 
of the following matters, namely,- 
 
  35[(a) the manner of filling casual vacancies among 
the member s of the Board 36[xxx] and the terms and 
conditions of service of the Chairman, 37[the Vice-Chairman] 
and other members of the Board 36[xxx] including the 
salaries or honoraria and  the allowances to be paid to them 
and the travelling and daily allowances to be draw n by them 
when they are on tour;] 
 
  (b) the disqualifications for 35[membership of  the 
Board 36[xxx]] and the procedure to be followed in removing 
a member who is or becomes subject to any disqualification 
                                                           
35. Substituted by Act No.5 of 1962. 
36. Omitted (and the council) by Act No.30 of 1981. 
37. Substituted for the words "the Secretary" by Act No.30 of 1981. 
Power to make 
rules. 
[Act No. IV of 1959]  19 
including the procedure to be followed for suspending a 
member pending enquiry as to his disqualification; 
 
  (c) the procedure to be followed for placing the Board 
in possession of funds; 
 
  (d) the procedure to be followed and the conditions 
to be observed in borrowing moneys or in granting loans; 
 
  (e) the conditions subject to which, and the mode in 
which, contracts may be entered into by or on behalf of the 
Board; 
 
  (f) the conditions subject to which movable or 
immovable property may be acquired by the Board or any 
immovable property belonging to it may be transferred by 
sale, lease or otherwise, the conditions subject to which any 
movable or immovable property belonging to the 
Government may be transferred to the Board for its use and 
management for the purposes of this Act; 
 
  (g) a ny other matter which has to be, or may be, 
prescribed. 
 
 (3) All rules made under this section shall be laid on 
the table of the Legislature as soon as possible after they 
are made and shall be subject to such modifications, 
whether by way of repeal or amendment, as that Legislature 
may make within fourteen days thereafter during the session 
in which they are so laid. 
 
29. (1) The Board may, with the previous sanction of the 
Government, by notification, make regulations, not 
inconsistent with this Act and the rules made there under, 
Power to make 
regulations. 
20  [Act No. IV of 1959] 
38[for enabling the Board to discharge its functions under 
this Act]. 
 
 (2) In particular and without prejudice to the generality 
of the foregoing power, such regulations may provide for all 
or any of the following matters, namely,- 
 
  (a) the terms and conditions of appo intment and 
service and the scales of pay of the Chi ef Executive Officer 
and other officers and servants of the Board 39[xxx] including 
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  
40[xxx] 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) 38[the delegation of powers and duties of the 
Board to the s tanding finance committee], the Chief 
Executive Officer or any employee of the Board; 
 
  (d) the maintenance of minutes of m eetings of the 
Board 40[xxx] and the transmission of copies thereof 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 moneys required for the current 
expenditure of the Board and the investment of moneys not 
so required; 
                                                           
38. Substituted by Act No.30 of 1981. 
39. (Other than the Secretary) omitted by Act No.30 of 1981. 
40. Omitted (and the Council) by Act No.30 of 1981. 
[Act No. IV of 1959]  21 
  (g) the form in whi ch and the scale of fees to be 
levied for granting the certificates of genuineness of Khadi 
and Products of Village Industries may be granted by the 
Board, and the procedure for the grant of such certificates. 
 
 (3) the Government may, by notification, modify or 
rescind any regulation made and the re upon the regulation 
shall stand modified accordingly o r shall cease to have 
effect, as the case may be. 
 
30. (1) The Hyderabad Khadi and Village Industries Board 
Act, 1955 (Hyderabad Act XII of 1955) shall, in its application 
to this State, stand repealed w ith effect from the date 
appointed in the notification i ssued under sub-section (3) of 
section 1. 
 
 (2) The Andhra Pradesh Khadi and Village Industries 
Board Ordinance, 1958 (Andhra Pradesh Ordinance III of 
1958), is hereby repealed. 
 
* * * 
Repeal. 

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