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The UTTAR PRADESH DEVELOPMENT COUNCIL ACT, 2006

Uttar Pradesh · state statute
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764 
 THE UTTAR PRADESH DEVELOPMENT COUNCIL ACT, 20061 
(U. P. Act No. 11 of 2006) 
[As passed by the Uttar Pradesh Legislature, assented to by the 
Governor on April 1, 2016 and published in U.P. Gazette extra-ordinary 
on April 5, 2006.]  
 AN 
ACT 
 to provide for the establishment of the Uttar Pradesh 
Development Council in the State to advise the Government on the steps 
to be taken for preparing investment friendly climate in the State, 
establishment and development of industries, giving special 
status/incentives to specific industries according to the investment 
made, remove the bottlenecks/barriers towards the process of 
industrialization and to attract investment in the State, simplify the 
Government procedures, rationalize the labour laws so as to increase 
employment opportunities in the State and other matters connected 
therewith or incidental thereto.  
 IT IS HEREBY enacted in the Fifty-seventh Year of the Republic of 
India as follows :β€” 
CHAPTER–1 
PRELIMINARY 
Short title 
and commen-
cement 
1. (1) This Act may be called the Uttar Pradesh Development 
Council Act, 2006. 
(2) It shall be deemed to have come into force on October 15, 
2003.  
Definitions 
 
 
 
 
2. (a) β€œBoard” means the Board of Governors of the predecessor 
Council ; 
(b) β€œChairman” means the Chairman of the Council ; 
(c) β€œConvener” means the Convener of the Council ; 
 (d) β€œCouncil” means the Uttar Pradesh Development Council 
established under section 3 ;  
(e) β€œMember” means a member of the Council ; 
 (f) β€œPredecessor Council” means the Uttar Pradesh Development 
Council, first established by Industrial Development Department, 
Government of Uttar Pradesh in Office Memorandum no. 55 (Sachiv-
Ga Camp)/Au. Vi. Anu-6, dated the October 15, 2003 and 
subsequently registered as a Society on thirty first day of March, 2004 
at serial number 2348/2003-2004 by the Registrar of Societies, Uttar 
Pradesh under the Societies Registration Act, 1860 ; 
(g) β€œSecretary” means the Member Secretary of the Council.  
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1. For S.O.R. see at the end of this Act. 
[The Uttar Pradesh Development Council, Act, 2006]  
766 
 CHAPTER–II 
ESTABLISHMENT, CONDUCT OF BUSINESS, FUNCTION, POWERS, FUNDS 
ACCOUNTS AND AUDIT OF THE COUNCIL 
Establishment 
of the Council 3. (1) There shall be established in the State a Council by the 
name of the Uttar Pradesh Development Council. 
(2) The Council shall be a body corporate. 
 (3) The Council shall for all purposes be deemed to be a local 
authority.   
(4) The Head Office of the Council shall be at Lucknow and it 
may have officers at such other places as it may consider necessary.  
Constitution 
of the Council 4. (1)  The Council shall consist of, β€” 
(a) the Chairman to be appointed by the State Government : 
Provided that the Chairman of the predecessor Council shall be 
deemed to have been the Chairman of the Council from the date of his 
appointment as Chairman of the predecessor Council :– 
 (b) Chief Secretary to the Government of.       β€”      ex-officio 
      Uttar Pradesh ;                                                 Convener  
(c) Industrial Development Commissioner       β€”      ex-officio 
     and Principal Secretary to the Government  Member 
     of Uttar Pradesh ;                                                Secretary 
 
 
 
(d) Principal Secretary to the Government of     β€”     ex-officio 
     Uttar Pradesh in the Department of Energy ;        Member 
(e) Principal Secretary to the Government of      β€”     ex-officio 
     Uttar Pradesh in the Department of Finance ;       Member 
 (f) Principal Secretary to the Government of      β€”     ex-officio 
    Uttar Pradesh in the Department of Excise ;          Member 
(g) Principal Secretary to the Government          β€”     ex-officio 
     of Uttar Pradesh in the Department                      Member 
     of Tax and Registration ; 
 (h) Principal Secretary to the Government          β€”    ex-officio 
    of Uttar Pradesh in the Department of Revenue ;   Member 
(i) Principal Secretary to the Government of Uttar  β€”  ex-officio 
    Pradesh in the Public Works Department ;              Member 
 
 
 
(j) Principal Secretary to the Government of        β€”    ex-officio 
     Uttar Pradesh in the Department of Tourism;        Member 
[The Uttar Pradesh Development Council, Act, 2006] 
768 
 (k) Principal Secretary to the Government of      β€” ex-officio 
    Uttar Pradesh in the Department   Member 
 of Environment;    
(l)  Principal Secretary to the Government of       β€”    ex-officio 
     Uttar Pradesh in the Department of Labour ;          Member 
(m)  Chairman and managing Director, Uttar      β€”     ex-officio 
       Pradesh Power Corporation Limited ;                    Member 
 (n)  Prominent persons from various sectors of the economy 
not exceeding twelve to be nominated by the State 
Government : 
 Provided that a member of the predecessor Council nominated 
by the State Government shall be deemed to have been the member of 
the Council from the date of his nomination to the predecessor Council 
and shall continue till he vacates his office.  
 (2) The State Government or the Council may also nominate 
suitable persons as special invitees from time to time : 
 Provided that the special invitees nominated by the State 
Government or the Council from time to time for the predecessor 
Council shall be deemed to have been special invitees of the Council 
from the date of their nomination to the predecessor Council. 
 (3) The Council may invite any person to attend a meeting of 
the Council for the purpose of assisting or advising it on any matter, 
and the person so invited may take part in any proceedings of the 
Council but shall have no right to vote. 
 (4) No act or proceeding of the Council shall be invalid by 
reason of the existence of any vacancy in, or defect or irregularity in 
the constitution of the Council or its act or proceeding.   
Terms of 
office of 
Chairman 
and other 
members 
5.  (1) The Chairman of the Council shall hold office for 5 years 
unless his term is determined earlier by the State Government by 
notification in the Gazette and shall be eligible for reappointment. 
 (2) A person nominated under clause (n) of sub-section (1) of 
section 4 shall, unless his term is determined earlier by the State 
Government by order, continue to be a member for a period of 5 year 
and shall be eligible for re-nomination.  
 (3) The Chairman or any other member referred to in sub-
sections (1) and (2) may at any time by writing under his hand 
addressed to the State Government resign his office or membership, 
and/or such resignation being accepted, he shall be deemed to have 
vacated his office. 
(4) The Chairman and the members referred to in sub-section 
(2) shall be honorary.  
Staff of the 
Council 6. (1) The Council may, with prior approval of the State 
Government, create suitable posts for its proper functioning. 
[The Uttar Pradesh Development Council, Act, 2006] 
770 
 (2) The Council may appoint or employ against the posts 
created under sub-section (1) temporarily or permanently or on 
contract basis, suitable persons as per the procedure approved by the 
State Government and pay them such wages, salaries etc. and allow 
them such other benefits including the benefits of Provident Fund. 
Gratuity etc. as may be approved by the State Government.   
 (3) Any person appointed by the Council or any of its 
functionaries, in contravention of the provisions of this section, shall 
be void ab-initio and his services shall be liable to be summarily 
terminated on this ground at any time following its determination. 
 (4) The Council may appoint staff of the Government or any 
organization to be its part-time functionary with the prior approval 
thereof : 
Provided that such of the above functionaries, as were 
functioning in the predecessor Council, shall continue to do function 
in the Council.   
Functions of 
the Council 7. The functions of the Council shall be, β€” 
(a) to advise the State Government on the steps to be taken for 
(i) promoting investment friendly climate in the State ; 
(ii) establishment and development of industries and services ; 
 (iii) giving special status/incentives to industries and services ; 
(iv) removing the bottlenecks/barriers in the process of 
industrialization and investment in the State ; 
(v) economic development, including industrialization of various 
regions and local areas of the State ; 
 (vi) attracting investment in the State ; 
(vii) simplification of the government procedures ; 
(viii) rationalizing the Labour Laws so as to increase 
employment opportunities in the State ; 
(b) any other functions as may be prescribed.  
Powers of the 
Council 8.  (1) To facilities the functions of the Council, the Council 
may call for any information from any department of the State 
Government or any authority or any other agency under the State 
Government. 
(2) The Council may call for consultation any officer or 
functionary of the State Government or any agency or authority, 
functioning under the State Government.  
Procedure to 
conduct the 
meetings 
9.  The procedure to conduct the meetings for the Council shall 
be such as may be prescribed by regulation. 
[The Uttar Pradesh Development Council, Act, 2006] 
772 
Delegation of 
powers 10.  Subject to the provisions of this Act, the Council may by 
general or special order, delegate, to any committee to be appointed by 
it or to the Convener Secretary or any other officer of the Council such 
of its power and duties under this Act as it deems fit.  
Authentication 
of orders and 
other 
instruments of 
the Council. 
11.  All proceedings of the Council shall be authenticated by 
the signature of the Chairman and all orders and other instruments of 
the Council shall be authenticated by the signature of the secretary or 
such other officer of the Council as may be authorized by the 
Chairman in this behalf.   
Funds of the 
Council 12.  (1) The Council shall have its own funds to be called the 
Council Fund which shall be a local fund to which shall be credited all 
moneys received by or on behalf of the Council. 
(2) The Council may obtain grants from the Government of 
India and the contribution from the statutory bodies, cooperative 
societies and companies and may also collect fees and charges for the 
services rendered.     
 (3) Notwithstanding anything contained in section 16, the 
Council Fund shall be managed and controlled by the Council as 
autonomous body.  
Accounts and 
Audits 13.  (1) The Council shall maintain proper accounts and other 
relevant records and prepare annual statement of accounts including 
the balance sheet in such form as may be determined by the Council. 
(2) The accounts of the Council shall be subject to audit 
annually by the Director, Local Fund Audit :  
 Provided that in place of or in addition to the Director, Local 
Fund Audit, the State Government may entrust the audit to the 
Accountant General, Uttar Pradesh or Comptroller and Auditor 
General of India or to any other auditor in respect of grants made by it.  
 (3) The accounts of the Council, as certified by the auditors 
together with the audit reports thereon, shall be placed before the 
Council annually or at such times as may be directed by it.  
 CHAPTER β€” III 
RULES AND REGULATIONS 
Power to make 
rules 14.  The State Government may, by notification in the Gazette, 
make rules for carrying out the purposes of this Act : 
Provided that the State Government may make rules 
retrospectively from a date not before that date of commencement of 
the Act.  
Power to make 
regulation  15.  (1) The Council may make the regulations, not inconsistent 
with this Act or the rules made thereunder for the administration and 
affairs of the Council.  
 
[The Uttar Pradesh Development Council, Act, 2006] 
774 
 (2) In particular and without prejudice to the generally of the 
foregoing powers, such regulations may provide for all or any of the 
following matters, namely :β€” 
(a) summoning and holding of meetings of the Council, the 
conduct of business at such meetings and number of members 
necessary to form quorum thereat ; 
 (b) the power and duties of the Convener and the Secretary of 
the Council ; 
(c) the salaries, allowances and the conditions of service of its 
officers and employees ;  
 (d) the allowance to be paid to its Chairman, Members and 
other invitees for attending its meetings and meetings of its 
committees;  
(e) the management of the properties of the Council. 
Control by the 
State 
Government 
16.  Subject to the provisions of section 12, the Council, the 
Chairman, the Convener or the Secretary shall carry out such 
directions as may be issued to it from time to time by the State 
Government for the efficient administration of this Act.  
 CHAPTER β€” IV 
MISCELLANEOUS 
Vesting 
abatement and 
savings 
17.  (1) With effect from the date of the establishment of the 
Council, the predecessor Council shall cease to exist and abate and all 
its assets, liabilities, rights and obligations shall vest in the Council.  
 (2) Notwithstanding the vesting and abatement of the 
predecessor council anything done or any action taken or continuing 
by the said predecessor Council, shall be deemed to have been taken 
and done or continued by the Council. 
 (3) All suits and other legal proceedings instituted or defended 
or which might but for vesting and transfer under sub-section (1) have 
been instituted or defended by or against the predecessor Council may 
be continued or instituted or defended by or against the Council.   
Decision of the 
State 
Government 
on the vesting 
of property to 
be final  
18.  Where any doubt or dispute arises as to whether any 
property or asset has vested in the Council under section 17 or any 
rights, liabilities or obligations have become the rights, liabilities and 
obligations of the Council under that section such doubt or dispute 
shall be referred to the State Government whose decisions shall be 
final. 
Protection 19.  No suit, prosecution or other legal proceeding shall lie 
against any person or anything which is done in good faith or intended 
to be done under this Act or any rules or regulations made thereunder.  
Power to 
remove 
difficulties 
20.  (1) If any difficulty arises in giving effect to the provisions 
of  this  Act,  the  State  Government  may,  by  order  published  in the  
 
[The Uttar Pradesh Development Council, Act, 2006] 
776 
 official Gazette, make such provisions not inconsistent with the  
provisions of this Act, as may appear to it to be necessary or expedient 
for removing the difficulty.  
(2) Every order made under this section shall be laid, as soon 
as may be after it is made, before each House of State Legislature.  
Dissolution of 
the Council  21.  (1) Where the State Government is satisfied that the 
purposes for which the Council was established under this Act have 
been substantially achieved or is of the opinion that the Council is not 
being able to achieve the objectives for which it was established, so as 
to render the continued existence of the Council in the opinion of the 
State Government unnecessary, the State Government may by 
notification declare that the Council shall be dissolved with effect from 
such date as may be specified in the notification ; and the Council 
shall be deemed to be dissolved accordingly.  
 (2) From the said date, β€” 
(a) all properties, funds and dues which are vested in, or 
realizable by the Council shall vest in or be realizable by, the State 
Government ; 
 (b) all liabilities which are enforceable against the Council shall 
be enforceable against the State Government. 
 β€”β€”β€” 
STATEMENT OF OBJECTS AND REASONS 
 The Uttar Pradesh Development Council had been constituted by the 
State Government on October 15, 2003 to advise the State Government 
on the steps to be taken for preparing investment friendly climate in 
the State, establishment of the industries, giving special status and 
incentives to the industries according to the investments made, 
removing the bottlenecks and barriers towards the industrialization 
and to attract investment in the State, simplifying the Government 
procedures, rationalizing the labour laws so as to increase employment 
opportunities in the State and other matters connected therewith. 
Several prominent and leading personalities in various sectors of 
Indian economy were nominated as members of the Council. 
Resourcing on their wisdom, the Council has been recommending, 
from time to time, various policy initiatives to the State Government on 
which the State Government announced several policy formulations for 
the development of various sectors of the State economy. As a 
consequence of these policy initiatives by the State Government, the 
State has been able to attract proposals for investments during the 
year 2005 to the extent of over rupees thirty three thousand crores, a 
record for the State Several other States have borrowed from these 
policy formulations. It has been possible for the Council to make the 
new policy-recommendations because of freedom of thought and 
autonomy of functioning by the Council. It has been decided to make a 
law to establish the said Council as a local authority with autonomous 
status with retrospective effect, to enable it to discharge its 
responsibilities more effectively for the development and benefit of the 
State.     
The Uttar Pradesh Development Council Bill, 2006 is 
introduced accordingly.  
 

 
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