The UTTAR PRADESH KHADI AND VILLAGE INDUSTRIES BOARD ACT, 1960 ( IN ENGLISH)

Short title, 
extent and 
commencement 
Definitions 
THE UTTAR PRADESH KHADI AND VILLAGE INDUSTRIES 
BOARD ACT, 19601 
[ U. P. ACT NO. X of 1960 ] 
Amended by 
U. P. Act No. XXIV of 1966 
U. P. Act No. XIV of 1975 
U. P. Act No. XXXIX of 1976 
U. P. Act No. 11 of 1983 
U. P. Act No. 15 of 1992 
U. P. Act No. 09 of 2008 
[ Passed in Hindi by the Uttar Pradesh Legislative Assembly 
on April 7, 1960, and by the Uttar Pradesh Legislative Council on 
April 12, 1960. 
Received the assent of the Governor on April 22, 1960, 
under Article 200 of the Constitution of India and was published in 
the Uttar Pradesh Gazette Extraordinary, dated April 26, 1960. | 
AN 
ACT 
to provide for the establishment of a Board for the 
development of Khadi and Village Industries in Uttar Pradesh and 
matters connected therewith. 
It is hereby enacted in the Eleventh Year of the Republic of India 
as follows :— 
CHAPTER — I 
PRELIMINARY 
1. (1) This Act may be called the Uttar Pradesh Khadi and 
Village Industries Board Act, 1960. 
(2) It extends to the whole of Uttar Pradesh. 
(3) This section shall come into force at once and the remaining 
provisions of the Act, shall come into force on such date as the State 
Government may, by notification? in the official Gazette, appoint in this 
behalf. 
2. In this Act, unless there is anything repugnant in the subject 
or context, — 
(i) “Board” means the Uttar Pradesh Khadi and Village 
Industries Board established under section 4 ; 
1. For Statement of Objects and Reasons see Uttar Pradesh Gazette Extraordinary, dated April 8, 1960. 
2. Remaining provisions of the Act came into force with effect from September 14, 1960, Vide Industries (A) 
Department notification no. 2984 (9)-18-A—457-60, dated September 14, 1966. 
54
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Power to add 
to the 
Schedule 
Establishment 
of the Board 
(ii) “Chairman” means the Chairman of the Board ; 
1[ (ii-a) “Chief Executive Officer” and “Additional Chief Executive 
Officer” means respectively the Chief Executive Officer and the 
Additional Chief Executive Officer of the Board appointed under section 
10;] 
2 [(ii-b) “Finance Advisor” and “Accounts Officer” means 
respectively the Financial Advisor and Accounts Officer of the Board 
appointed under section 10 ; ] 
(iii) “Khadi” means any cloth woven on handlooms in India from 
cotton, silk or woolen yarn hand-spun in India or from a mixture of any 
two or all of such yarns ; 
(iv) “Member” means a member of the Board and includes its 
Chairman ; 
(v) “Prescribed” means prescribed by rules made under this Act; 
(vi) “Regulations” means regulations made under section 37 ; 
(vid) 3 * * * % ] 
4[ (vii-a) “Vice-Chairman” means Vice-Chairman of the Board ; 
5[and] 
(viii) “Village industries” means all or any of the industries 
specified in the Schedule and includes any other industry deemed to be 
specified in the Schedule by reason of a notification under section 3. 
3. (1) The State Government may, on its own motion or on the 
recommendation of the Board, declare by notification in the official 
Gazette, any other industry to be a village industry to which this Act 
applies, and thereupon the industry so declared shall be deemed to be 
an industry specified in the Schedule for the purpose of this Act. 
(2) A copy of every notification issued under sub-section (1) shall 
be laid before each House of the State Legislature, as soon as may be, 
after it is issued. 
CHAPTER — II 
ESTABLISHMENT OF THE BOARD 
4. There shall be established, by notification in the official 
Gazette, a Board, to be called the Uttar Pradesh Khadi and Village 
Industries Board, which shall be a body corporate having perpetual 
1. Subs. by sec. 2 of U. P. Act No. 15 of 1992. 
o 
s 
ow 
N . Ins. by sec. 2 () of U. P. Act No. 11 of 1983. (ii(a) and ii(b) added) w.e.f. July 24, 1982. 
. Omit. by sec. 2(b) of U. P. Act No. 11 of 1983 
. Ins. by sec. 2 of U.P. Act No. XXIV of 1966 ‘and’ word at the end deleted. 
. Omit by sec. 2 of U.P. Act No. XXIV of 1966. 
56
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Constitution of 
the Board 
Disqualification 
for being 
member 
succession and a common seal, with power, subject to the provisions of 
this Act, to acquire, hold and dispose of property and to contract, and 
may, by the said name, sue and be sued. 
1[5. (1) The Board shall consist of the following members, 
namely :— 
(A) Official members :— 
(i) Minister Incharge of Khadi and Village Industries in the State 
Government, who shall be the Chairman ; 
(ii) Director of Industries, Uttar Pradesh or his nominee not 
below the rank of a Joint Director ; 
2| (iii) Secretary to the Government of Uttar Pradesh incharge of 
Khadi and Village Industries, or his nominee not below the rank of a 
Deputy Secretary ; ] 
(iv) Secretary to the Government of Uttar Pradesh in the Finance 
Department or his nominee not below the rank of a Deputy Secretary ; 
(v) Secretary to the Government of Uttar Pradesh in Rural 
Development Department or his nominee not below the rank of a 
Deputy Secretary. 
3[(v-a) Secretary to the Government of Uttar Pradesh in the 
Planning Department or his nominee not below the rank of a Deputy 
Secretary ; 
3[(v-b) Chief Executive Officer or, if he is already a member of the 
Board in another capacity, the Additional Chief Executive Officer ; | 
(B) Non-official members :— 
(vi) Seven non-official members to be appointed by the State 
Government from amongst persons who in its opinion are qualified as 
having had experience and shown capacity in matters relating to 
development of Khadi and Village Industries. 
4[(2) The State Government shall appoint a Vice-Chairman from 
amongst non-official members. | 
(3) The appointment of every non-official member shall be 
notified in the Gazette. ] 
5[6. A person shall be disqualified for being chosen as or for 
being a member of the Board if he — 
1. Subs. by sec. 3 of U. P. Act No. 11 of 1983. 
o 
s 
ow 
N . Subs. by sec. 3(a) of U. P. Act No. 15 of 1992. 
. Ins. by sec. 3(b) of U. P. Act No. 15 of 1992. 
. Subs. by sec. 2 of U. P. Act No. 09 of 2008. 
. Subs. by sec. 3 of U.P. Act No. XIV, 1975. 
58
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Term of office 
of non-official 
members 
Appointment 
of 
Administrator 
in certain 
cases 
1[(a) has been convicted of an offence which in the opinion of the 
State Government involves moral turpitude ; or 
(b) is an undischarged insolvent ; or 
(c) is of unsound mind and has been so declared by a competent 
court ; or 
(d) holds, except as provided in sub-section (2) of section 12, any 
office of profit under the Board ; or 
(e) has directly or indirectly by himself or by any partner 
employer or employee, any share or interest, whether pecuniary or of 
any other nature, in any contract or employment with by or on behalf of 
the Board ; or 
(f) if a Director or a Secretary, Manager, or other officer of any 
company or co-operative or other society which has any share or interest 
in any contract or employment with, by or on behalf of the Board. 
Explanation— A person shall not be deemed to have any share 
or interest in any contract or employment with, by or on behalf of the 
Board by reason only of his being a share-holder of a company or 
co-operative or other society which has such share or interest. 
6-A. (1) A non-official member of the Board shall hold office for a 
period of 2[one year] unless his term is determined earlier by the State 
Government by notification in the Gazette : 
Provided that the State Government may, from time to time, by 
notification in the Gazette, extend the term of office of such member by a 
period not exceeding one year in the aggregate. 
(2) The term of the office of the Vice-Chairman shall be co- 
terminus with the term of his office as a non-official member under sub- 
section (1). 
(3) The Vice-Chairman or non-official member may at any time, 
by writing under his hand, addressed to the State Government resign his 
office, and on such resignation being accepted he shall be deemed to 
have vacated his office. 
(4) A casual vacancy in the office of Vice-Chairman or a non- 
official member shall be filled by fresh appointment by the State 
Government and the Vice-Chairman or other member so appointed shall 
hold office for the remainder of the term of the Vice-Chairman or 
member in whose place he is appointed. 
6-B. Where the term of office or the extended term of office of all 
non-official members expires or is determined earlier, and no new non- 
official members are appointed in their place, then until the appointment 
of new non-official members —]1 
1. Subs. by sec. 3 of U.P. Act No. XIV of 1975. 
2. Subs. by sec. 3 of U. P. Act No. 09 of 2008. 
60
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Meetings of 
the Board 
Vacancies amongst members or defects in the constitution of the Board not to invalidate acts or proceedings of the Board 
Office of the 
Board 
1[(a) all functions and duties of the Board, its Chairman, Vice- 
Chairman and committees shall be vested in and be performed and 
discharged subject to the control of State Government, by an officer 
appointed in that behalf by the State Government (hereinafter referred to 
as the Administrator), and the Administrator shall be deemed in law to 
be the Board, the Chairman or the committee, as the occasion may 
require ; 
(b) such salary and allowances, if any, of the Administrator as 
the State Government may, by general or special order in that behalf, fix 
shall be paid out of the fund of the Board ; 
(c) the State Government may constitute a committee or other 
body to advise the Administrator or to perform such of the functions and 
duties of the Board as it may specify in that behalf. ]! 
7. (1) The Board shall meet at such time and places and shall, 
subject to the provisions of sub-sections (2) and (3), observe such 
procedure in regard to the transaction of business at its meetings 
(including the quorum at meetings) as may be provided by regulations 
made under this Act. 
2[(2) The Chairman or in his absence, the Vice-Chairman or in 
the absence of both, such other person as may be chosen by the 
members present from amongst themselves, shall preside at the 
meetings of the Board. | 
(3) All question at a meeting of the Board shall be decided by a 
majority of votes of the members present and voting and in the case of 
equality of votes, 3[the person presiding] shall have a second or casting 
vote. ] 
4[(4) The Chairman may invite any person to attend a meeting of 
the Board for the purpose of advising or assisting the Board on any 
matter. The person so invited may take part in the discussions of the 
Board but shall have no right of vote. ] 
8. No act or proceeding of the Board shall be deemed to be 
invalid by reason merely of any vacancy in or any defect in the 
constitution of the Board. 
5[9. The office of the Board shall be located at a place to be 
notified by the State Government in the official Gazette and shall, until 
2N 
RS 
. Subs. by sec. 3 of U. P. Act No. XIV of 1975. 
. Subs. by sec. 5 (a) of U. P. Act No. XXIV of 1966. 
. Subs. by sec. 5 (b) ibid. 
. Added by sec. 5 (o) ibid. 
. Subs. by sec. 6 of U.P. Act No. XXIV of 1966. 
62
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Officers and 
employees of 
the Board. 
Powers and 
duties of the 
Chief 
Executive 
Officer, 
Financial 
Advisor and 
the Accounts 
Officer. 
so notified, continue to be located at Kanpur. | 
1[ 10. (1) The State Government shall, on such terms and 
conditions as it may by general or special order specify in this behalf, 
appoint such person, including a Government servant, as it deems fit, 
as— 
(a) Chief Executive Officer, 
2 (aa) Additional Chief Executive Officer. ] 
(b) a Financial Advisor, and 
(c) an Accounts Officer. 
(2) The Accounts Officer shall be appointed in consultation with 
the Board. 
(3) The Board may, in accordance with the regulations made in 
this behalf, appoint such other officers and employees as it thinks fit. ] 
3[ 11. (1) The Chief Executive Officer shall exercise the following 
powers and perform the following duties, namely :— 
(a) to control all administrative work ; 
(b) to implement the policies and programmes of the Board ; 
(c) to call meetings of the Board in consultation with the 
Chairman, to prepare minutes thereof and to cause decisions taken 
therein to be implemented ; 
(d) to make entries in the character rolls of the subordinate 
officers and employees of the Board ; 
(e) to execute contracts and assurance of property on behalf of 
the Board ; 
(f) to cause to be prepared reports, returns and other information 
required by the Act and the rules or asked for by the State Government 
and the Khadi and Village Industries Commission ; 
(g) to operate the Bank accounts of the Board ; 
(h) to cause annual reports under sub-section (2) of section 29 to 
be prepared and submitted to the Board ; 
(i) to exercise such other powers and perform such other duties 
as may be prescribed. 
(2) The Financial Advisor and the Accounts Officer shall have 
such powers and perform such duties as may be prescribed. | 
1. Subs. by sec. 4 of U. P. Act No. 11 of 1983. 
2. Ins. by sec. 4 of U. P. Act No. 15 of 1992. 
3. Subs. by sec. 5 of U. P. Act No. 11 of 1983. 
64
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Terms and 
conditions of 
service of 
employees of 
the Board 
and terms of 
office of its 
members 
Authentica- 
tion of 
instruments 
or orders of 
the Board. 
Functions of 
the Board 
12. (1) The terms and conditions of service of the ![officers and 
employees of the Board appointed under ![sub-section (3)] of 2[section 
10] shall be such as may be provided by regulations made in this behalf. 
3[ (2) The Vice-Chairman shall be paid remuneration, and other 
non-official members shall be entitled to travelling and daily allowance 
from the Board in accordance with such general or special orders as the 
State Government may, from time to time, issue in that behalf. | 
4 13. Every contract and assurance of property on behalf of the 
Board shall be in writing and executed by the Chief Executive Officer in 
such manner as may be prescribed and every order or decision of the 
Board shall be authenticated by the Vice-Chairman or the Chief 
Executive Officer or such other member or officer as may be authorized 
by the Board in this behalf. ] 
14. 5[ X X X | 
CHAPTER — III 
FUNCTIONS OF THE BOARD 
15. (1) Subject to the provisions of this Act, the functions of the 
Board shall generally be to plan, organize, develop and regulate khadi 
and village industries 6[and to implement the schemes formulated by it, 
for that purpose. | 
(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 plan and organize the training of persons engaged or 
interested in the production of khadi or in village industries ; 
(b) to build up a reserve of raw materials and implements and to 
supply them to persons engaged in the production of khadi or in village 
industries at such economical rates as may be suitable in the opinion of 
the Board ; 
(c) to provide for sale, publicity and marketing of khadi and 
products of village industries ; 
(d) to encourage and promote research in the technique of 
production of khadi and development of village industries, or to provide 
facilities for study of the problems relating to khadi or village industries ; 
1. Subs. by sec. 
. Omit. by sec. 
oo 
s 
w 
N . Subs. by sec. 
. Subs. by sec. 
. Subs. by sec. 
9 (a) for (employees of the Board) of U.P. Act No. XXIV of 1966. 
6 of U. P. Act No. 11 of 1983. 
4 of U. P. Act No. 14 of 1975. 
7 of U. P. Act No. 11 of 1983. 
11 of U. P. Act No. 24 of 1966. 
. Ins. by sec. 12 of U.P. Act No. 24 of 1966. 
66
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Limitations on 
the functions of 
the Board 
Formulation and submission of programme and scheme 
Supplementary 
programmes. 
and schemes 
Sanction of 
programmes 
and schemes 
Implementation 
of programmes 
and schemes 
Annual 
financial 
statement 
(e) to maintain, or assist in the maintenance of, institutions for 
the development of khadi or village industries ; 
(f) to undertake, assist or encourage the production of khadi or 
the development of village industries ; 
(g) to promote and encourage co-operative effort among 
manufacturers of khadi and/or persons engaged in village industries ; 
(h) to secure co-ordination between individuals and institutions, 
including co-operative societies, engaged in the work of khadi and 
village industries ; and 
(i) to carry out any other matter which may be prescribed. 
16. (1) In the discharge of its functions under this Act, the 
Board shall be bound by such directions as the State Government may 
give to it. 
(2) The Board shall not dispose or acquire immovable property, 
except with the prior approval in writing of the State Government. 
CHAPTER — IV 
PREPARATION AND SUBMISSION OF PROGRAMMES AND SCHEMES AND 
FINANCIAL STATEMENTS (BUDGET) 
17. It shall be the duty of the Board to formulate programmes of 
work and schemes for implementation in a financial year, and submit 
the same to the State Government in such forms and containing such 
particulars and by such date or dates as may be prescribed. 
18. The Board may prepare supplementary programmes and 
schemes and submit the same to the Government in such forms and 
containing such particulars, as may be prescribed. 
19. The State Government may approve in whole, or with such 
modifications as it deems fit, the programme or the schemes or the 
supplementary programmes or the supplementary schemes submitted 
under section 17 or section 18, as the case may be, and the 
programmes or schemes so approved, shall be the programmes or the 
schemes for the year or period for which the same were made. 
20. On receipt of the sanction of the State Government to the 
programmes or schemes or the supplementary programmes or the 
supplementary schemes, as the case may be, under section 19, the 
Board shall implement the same. 
21. (1) The Board shall in respect of every financial year cause 
to be prepared a statement of the estimated receipts and expenditure of 
the Board for that year and cause it to be submitted to the State 
Government for its approval. 
(2) The estimates of expenditure embodied in the annual 
financial statement shall show separately ; 
68
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Supplementary 
financial 
statement 
Approval of 
the State 
Government 
on annual and 
supplementary 
financial 
statement 
Power of the 
Board to spend 
Limitations on the Power of the Board to spend 
(a) allowance of the ![Vice-Chairman] and other non-official 
members ; 
(b) emoluments and allowances of 2[the officers and employees] 
of the Board and other expenditure relating to the office of the Board; 
(c) debt charges for which the Board is liable including interest, 
sinking fund charges and redemption charges, and other expenditure 
relating to the borrowing of loans and the service and redemption of 
debt ; 
(d) any sums required to satisfy any judgement, decree or 
award of any court or tribunal ; 
(e) any sums required for implementation of programmes and 
schemes of the Board ; and 
(f) any other expenditure, as may be prescribed for the 
purposes of this Act. 
22. The Board shall, where the amount authorized by the 
annual financial statement to be expended for a particular service, 
programme or scheme for the current financial year, approved by the 
State Government is found to be insufficient for the purposes of that 
year or when a need has arisen during the current financial year for 
supplementary expenditure upon some new service, programme or 
scheme not contemplated in the annual financial statement for the 
year, cause to be prepared, another statement showing the estimated 
amount of that expenditure and cause it to be submitted to the State 
Government for its approval. 
23. (1) The State Government may approve an annual financial 
statement or the supplementary financial statement, submitted under 
section 21 or section 22, as the case may be, in whole or with such 
modifications as it deems fit. 
(2) The annual financial statement or the supplementary 
financial statement, so approved by the State Government shall be “the 
annual financial statement” or “the supplementary financial 
statement” of the Board for that year. 
24. Subject to the provisions of section 25 the Board shall have 
power to spend such sums as it thinks fit on purposes authorized by 
this Act. 
25. (1) Subject to the provisions of sub-sections (2) and (3), no 
sum shall be expended by or on behalf of the board, except in 
accordance with the annual financial statement, the supplementary 
financial statement, as the case may be, approved by the State 
Government under section 23. 
1. Subs. by sec. 
2. Subs. by sec. 
13 (i) of U. P. Act No. XXIV of 1966. 
13 (ii) for “the employers” of U.P. Act No. XXIV of 1966. 
70
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Power to 
write off 
irrecoverable 
amount 
Fund of the 
Board 
Acceptance 
of gifts, 
subventions, 
etc. by Board 
Subventions 
and loans to 
Board 
(2) The Board may, within the respective limits of the [annual 
financial statement or the supplementary financial statement, as the 
case may be, sanction, with the prior approval of the State Government, 
any re-appropriation from one head of expenditure to another or from 
provision made for one scheme to that in respect of another but in no 
case re-appropriation shall be made from the khadi account to the 
village industries account or from the village industries account to the 
khadi account. 
(3) The Board may, within such limits and subject of such 
conditions as may be prescribed, incur expenditure in excess of the limit 
provided in the annual financial statement or the supplementary 
financial statement under any head of expenditure or in connection with 
any particular scheme falling under the same head, so long as the 
aggregate amount specified therein in respect of that head is not 
exceeded. 
1[25-A. The Board may write off an amount due to it up to 
rupees one thousand in any individual case and up to rupees ten 
thousand in the aggregate in any financial year if, in its opinion, such 
amount is irrecoverable. ] 
CHAPTER — V 
FINANCE, ACCOUNTS, AUDIT AND REPORTS 
2[ 26. (1) There shall be a Fund of the Board to which shall be 
credited all moneys received by, or on behalf of, the Board. 
(2) All moneys belonging to the Fund of the Board shall be 
deposited in the Government Treasury under two separate personal 
ledger account to be called respectively, the Khadi Account’ and the 
‘Village Industries Account’ and also in any other similar accounts to be 
opened by the Board as and when necessary in respect of its different 
schemes. 
(3) Subject to any rule so made in this behalf, the Board may 
from time to time withdraw from such personal ledger accounts, such 
amount as may be required for its purposes and may, if it thinks fit to 
so to do, credit any such amount in account with any Schedule Bank. ] 
27. The Board may, with the prior approval of the State 
Government, accept grants, subventions, donations and gifts. 
28. (1) The State Government may, from time to time, make 
subventions and grants to the Board for the purpose of this Act, on such 
terms and conditions as the State Government may impose in this 
behalf. 
(2) Subject to the provisions of this Act and the rules made 
thereunder and such conditions as the State Government may impose 
1. Ins. by sec. 14 of U. P. Act No. XXIV of 1966. 
2. Subs. by sec. 8 of U. P. Act No. 11 of 1983. 
72
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Return and 
reports 
Account and 
audit 
Committees 
of the Board 
in this behalf, the Board may, from time to time and with the previous 
sanction of the State Government, borrow on the security of the Khadi 
Account or the Village Industries Account or any other asset of the 
Board of otherwise any sum required for giving effect to the purposes of 
this Act. 
29. (1) The Board shall furnish to the State Government at such 
time and in such form and manner as may be prescribed or as the State 
Government may direct, such returns and statements and such 
particulars in regard to any proposed or existing programme or scheme 
for the promotion and development of khadi and Village Industries, as 
the State Government may, from time to time, require. 
(2) Without prejudice to the provisions of sub-section (1) the 
Board shall, as soon as possible after the end of each financial year, 
submit to the State Government a report, in such form and by such date 
as may be prescribed, giving a true and full account of its activities, 
policies and programmes during the previous financial year. 
(8) A copy of the report received under sub-section (2) shall be 
laid before each House of the State Legislature. 
30. (1) The Board shall cause to be maintained such books of 
accounts and other records in relation to its functions in such form and 
in such manner, as may be prescribed. 
(2) The Board shall, as soon as may be after the closing of its 
annual accounts, prepare an annual statement of accounts in such 
form and in such manner as may be prescribed. 
1[(3) The accounts of the Board shall be audited by the 
Accountant General, Uttar Pradesh, or any officer authorized by him in 
this behalf. | 
(4) The annual statement of accounts of the Board together with 
the audit report thereon shall be submitted by the Board to the State 
Government for such action as it may think proper to be taken. 
(5) A copy of the annual statement of accounts of the Board 
together with the audit report thereon received under sub-section (4) 
shall be laid before each House of the State Legislature. 
CHAPTER — VI 
MISCELLANEOUS 
2[381. (1) For the purpose of exercising such power and 
performing such duties or discharging such functions as may be 
prescribed, the Board shall establish :— 
(a) a Selection Committee ; 
(b) a Finance Committee. 
1. Subs. by sec. 15 of U. P. Act No. XXIV of 1966. 
2. Subs. by sec. 9 of U. P. Act No. 11 of 1983. 
74
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Delegation of 
powers and 
functions 
1[(2) The Selection Committee shall consist of the following 
members ; 
(a) Chief Executive Officer, who shall be the Chairman ; 
(b) The Director of Industries, Uttar Pradesh, or his nominee not 
below the rank of a joint Director ; 
(c) A representative of the State Directorate of the Khadi and 
Village Industries Commission ; 
(d) Concerned Project Officer who shall be the Technical Advisor. 
(3) The Finance Committee shall consist of the following 
members ; 
(a) Chairman of the Board, (Chairman) ; 
(b) Two non-official members of the Board to be nominated by 
the Chairman ; 
(c) Secretary to the State Government in the Industries 
Department or his nominee not below the rank of a Deputy Secretary ; 
(d) Secretary to the State Government in the Finance Department 
or his nominee not below the rank of a Deputy Secretary ; 
(e) Chief Executive Officer ; 
(f) Financial Advisor ; 
(g) Accounts Officer, who shall be the Member-Secretary. 
(4) The term of office of the non-official members of the 
Committees of the Board shall be such as may be prescribed. 
(5) The members of the Committees of the Board shall draw 
travelling and daily allowance in accordance with such general or 
special orders as the State Government may issue in this behalf. 
(6) Without prejudice to the generality of the provisions of sub- 
section (1), the Finance Committee shall perform the following functions 
and duties, namely :— 
(a) to consider the demands for loans/grants and to take 
decision for sanction on the basic of the available budget ; 
(b) to prepare budget estimates ; 
(c) to scrutinize the financial progress, realization, certificate of 
utilization, etc. 
(7) Upon the constitution of the Committees referred to in sub- 
section (1) every committee or sub-committee constituted under this 
Act, prior to the commencement of the Uttar Pradesh Khadi and Village 
Industries Board (Amendment) Act, 1982, shall cease to exist. 
31-A. The Board may, by general or special order, delegate 
either unconditionally or subject to such conditions including the]t 
1. Subs. by sec. 9 of U.P. Act No. 11 of 1983. 
76
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Advisory 
Committee 
Dissolution 
of the Board 
condition of review by itself as may be specified in the order, to the Vice- 
Chairman, Chief Executive Officer or any other Officer, such of its 
powers and functions under the Act as it thinks fit. | 
1[31-B. (1) The State Government may, by notification in the 
Gazette, constitute an Advisory Committee to advise the Board on 
matters referred to it by the Board. 
(2) The Advisory Committee shall consist of one representative 
from each Commissioner’s Division in the State having interest in the 
field of Khadi and Village Industries. ] 
2[32. (1) If the State Government is of opinion that Board has 
failed to carry out the functions under this Act, or that for any other 
reason it is not necessary to continue the Board, it may, by notification 
in the Gazette, dissolve the Board from such date as may be specified in 
the notification. 
(2) Upon the publication of a notification under sub-section (1) 
dissolving the Board — 
(a) the Chairman, the Vice-Chairman and all members of the 
Board shall, as from the date of dissolution, vacate their offices ; 
(b) all the powers and functions which may by or under this Act 
be exercised and performed by or on behalf of the Board shall, as from 
the date of dissolution, be exercised and performed, subject to the 
control of the State Government by such single person or institution as 
it may specify in that behalf and all subsisting contracts, agreements 
and other instruments to which the Board is a party or which are in 
favour of the Board may be enforced or acted upon, and all pending 
suits, appeals and other legal proceedings by or against the Board may 
be continued, prosecuted or enforced, by or against the State 
Government or such person or institution, as the case may be ; 
(c) the Fund of and other properties vested in the Board shall 
vest in the State Government ; and 
(d) all liabilities, legally subsisting and enforceable against the 
Board, shall be enforceable against the State Government 3[ * * * ], 
(3) Notwithstanding anything contained in sub-section (1) or sub- 
section (2), the State Government may at any time, again establish a 
Board under section 4, thereupon — 
(a) the powers and functions as well as the rights and liabilities 
in relation to contracts, agreements and other instruments, and suits, 
appeals and other legal proceedings referred to in clause (b) of sub- 
section (2) shall re-vest in the Board ; 
(b) the fund and other properties referred to in clause (c) of 
1. Ins. by sec. 31-A of U. P. Act No. 11 of 1983. 
2. Subs. by sec. 8 of U.P. Act No. XIV of 1975. 
3. Omit. by sec. 2 of U. P. Act No. XXXIX of 1976. 
78
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Members and 
Employees of 
the Board to 
be Public 
Servants 
Act XLV of 
1860 
Protection of 
action taken 
under this 
Act 
Recovery of 
certain dues 
as arrears of 
land revenue 
Power to 
make rules 
section (2) remaining with the State Government after meeting any 
liabilities referred to in clause (d) thereof shall re-vest in Board. |! 
33, 2 * *x *x x| 
34. All members and employees of the Board shall be deemed 
when acting or purporting to act in pursuance of any of the provisions of 
this Act, to be public servants within the meaning of section 21 of the 
Indian Penal Code, 1860. 
35. No suit, prosecuting or other legal proceedings shall lie 
against any person for anything which is in good faith done or purported 
to be done under this Act. 
3[35-A. Where any amount is recoverable by the Board on 
account of any loan or advance or grant made by it for the purpose of 
development of Khadi and village Industries, the same may without 
prejudice to any other remedy provided by law be recovered as arrears of 
land revenue. | 
36. (1) The State Government may, after previous publication 
and by notification in the official Gazette, make rules for carrying out 
the purposes of this Act. 
(2) In particular and without prejudice to the generality of the 
foregoing powers, such rules may provide for all or any of the following 
matters, namely :— 
@ 4 ** *| 
(b) 4 * * * ] 
5[(c) the powers and duties of the Financial Advisor and Accounts 
Accounts Officer ; ] 
(d) the matters concerning the functions of the Board ; 
(e) expenditures to be embodied in the annual financial 
statement ; 
(f) the matters concerning the programmes and schemes of the 
Board ; 
(g) the matters concerning the annual financial statement and 
the supplementary financial statement of the Board ; 
5[(h) the submission of annual report under section 29. | 
1. Subs. by sec. 8 of U. P. Act No. XIV of 1975. 
2 
SRR 
. Omit. by sec. 9 of U.P. Act No. XIV of 1975. 
. Ins. by sec. 17 of U. P. Act No. XXIV of 1966. 
. Clauses (a) and (b) omit. by sec. 18 (i) of U. P. Act no. XXIV of 1966. 
. Subs. by sec. 11 of U. P. Act No. 11 of 1983. 
80
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
Power to 
make 
regulations 
Saving 
(i) the form and manner in which accounts and other records in 
relation to the functions of the Board shall be maintained under sub- 
section (1) of section 30 ; 
(j) the preparation and submission of the annual statement of 
accounts under sub-section (2) of section 30 ; 
(k) the procedure to be followed in removing a member under 
section 6 ; 
(1) the procedure to be followed and the conditions to be observed 
in borrowing moneys under section 28 ; 
(m) the conditions subject to which and the mode in which 
contracts may be entered into by or on behalf of the Board ; and 
(n) any other matter which has to be or may be prescribed. 
(3) All rules made under this Act shall, as soon as may be after 
they are made, be laid before each House of the State Legislature while it 
is in session, for a total period of fourteen days extending in its one 
session or more than one successive sessions and shall, unless some 
later date is appointed, take effect, from date of their publication in the 
official Gazette, subject to such modifications or annulments as the two 
houses of the Legislature may agree to make so, however, that any such 
modification or annulment shall be without prejudice to the validity of 
anything previously done thereunder. 
37. (1) The Board may, with the previous sanction of the State 
Government, make regulations consistent with this Act, and the rules 
made thereunder and notify them in the official Gazette. 
(2) In particular and without prejudice to the generality of the 
foregoing power, the Board may make regulations providing for — 
(a) the procedure in regard to the transaction of business of the 
Board or of its Committees ; 
1[ (b) the appointment and conditions of service of the persons 
referred to in sub-section (3) of section 10. | 
(c) the matters relating to functions and duties of the employees 
fo the Board ; 
@ [=**p 
@ [*** ] 
(f) any other matter which has to be or may be provided for by 
regulations. 
38. (1) Nothing in this Act shall apply or be deemed to apply to 
any industry, the control of which by the Union is declared by 
Parliament by law to be expedient in the public interest. 
1. Subs. by sec. 12(a) of U. P. Act No. 11 of 1983. 
2. Omit. by sec. 12(b) of U. P. Act No. 11 of 1983. 
82
[The Uttar Pradesh Khadi and Village Industries Board Act, 1960] 
(2) The provision of this Act shall be in addition to, and not in 
derogation of, the provisions of any other law for the time being in force 
relating to Khadi and Village Industries. 
SCHEDULE 
[See Sections 2 (viti) and 3 (1)] 
- Bee-Keeping. 
2 Cottage match industry. 
3.  Cottage pottery industry. 
4 Cottage soap industry. 
5. Flaying, curing and tanning of hides and skins and ancillary 
industries connected with the same and cottage leather industry. 
6.  Ghani oil industry. 
7. Hand-made paper. 
8.  Manufacture of cane-gur and khandsari. 
9.  Palm-gur making and other palm-products industries. 
10. Processing of cereals and pulses. 
11. Fiber other than coir. 
12. Blacksmithy and carpentry (manufacturing and servicing 
not involving the use of power ; power may be used in the case of 
manufacture of Ambar Charkhas and their accessories). 
84

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