The West Bengal Backward Classes Development And Finance Corporation Act, 1995

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GOVERNMENT OF WEST BENGAL
LAW DEPARTMENT
Legislative
West Bengal Act XIX of 1995
THE WEST BENGAL BACKWARD CLASSES
DEVELOPMENT AND FINANCE
CORPORATION ACT, 1995.
[Passed by the West Bengal Legislature.]
[Assent of the Governor was first published in the Calcutta Gazette,
Extraordinary, of the 10th October, 1995.]
[10th October; 1995.]
An Act to establish a Backward Classes Development and Finance
Corporation in West Bengal.
WHEREAS it is expedient to provide for the establishment of a Backward
Classes Development and Finance Corporation in West Bengal;
It is hereby enacted in the Forty-sixth Year of the Republic of India,
by the Legislature of West Bengal, as follows:-
1. (1) This Act may be called the West Bengal Backward Classes
Development and Finance Corporation Act, 1995.
(2) It extends to the whole of West Bengal.
(3) It shall come into force on such date as the State Government
may, by notification, appoint.
Short title,
extent and
commence-
meat.
2. In this Act, unless there is anything repugnant in the subject or Definitions.
context,—
(a) "backward classes" means such classes as the State
Government may, by notification, specify from time to time;
(b) "the Corporation" means the West Bengal Backward Classes
Development and Finance Corporation established undef
section 3;
(c) "marketing" includes all activities in connection with the
transport, grading, pooling, marketing and sale of industrial
produce, whether in the primary form or in semi-processed
or processed form;
285
The West Bengal Backward Classes Development and
Finance Corporation Act, 1995.
[West Ben. Act
Incorporation.
Constitution
of the
Corporation.
(Sections 3, 4.)
(d) "notification" means a notification published in the Official
Gazette;
(e) "prescribed" means prescribed by rules made under this Act;
(1) "traditional occupation" means a community based
occupation followed by the backward classes.
3. (1) The State Government may, by notification, establish a
Corporation to be- known as the West Bengal Backward Classes
Development and Finance Corporation.
(2) The Corporation shall be a body corporate by the name notified
under sub-section (1), having perpetual succession and a common seal,
and shall by the said name sue and be sued.
4. (1) The Corporation shall consist of the following members,
namely:—
(a) the Secretary, Department of Agriculture, Government of
West Bengal, ex officio;
(b) the Secretary, Department of Animal Resources
Development, Government of West Bengal, ex officio;
(c) the Secretary, Department of Co-operation, Government of
West Bengal, ex officio;
(d) the Secretary, Department of Cottage and Small Scale
Industries, Government of West Bengal, ex officio;
(e) the Secretary, Department of Forests, Government of West
Bengal, ex officio;
(f) the Secretary, Department of Rural Development,
Government of West Bengal, ex officio;
(g) the Secretary, Scheduled Cases and Tribes Welfare Depart-
ment, Government of West Bengal, ex officio;
(h) the Chairman of the West Bengal Khadi and Village
Industries Board established under section 3 of the West
Bengal Khadi and Village Industries Board Act, 1959, ex
officio;
(i) such number of other members, not exceeding ten but not
less than five, as the State Government may, by notification,
appoint:
Provided that at least three members of the Corporation
shall be from amongst the members of the backward classes.
(2) The State Government shall appoint one of the members as the
Chairman and may, if it thinks fit, appoint another as the Vice-Chairman
of the Corporation.
West Ben.
Act XIV
of 1959.
286
The West Bengal Backward Classes Development and
Finance Corporation Act, 1995.
XIX of 1995.]
(Sections 5-7.)
(3) In the event of the capital of the Corporation being raised by the
issue of shares to the members of the public, provision shall be made by
rules made under this Act for the representation of such share-holders in
the Corporation and the manner in which the representatives shall be
elected by such share-holders.
(4) The term of office, and the manner of filling casual vacancies in
the offices, of the members of the Corporation shall be such as may be
prescribed.
5. A person shall be disqualified for being chosen as, and for being, Disqualifica-
tions for
membership.
(a) if he is a lunatic or a person of unsound mind, or
(b) if he has been adjudged insolvent, or
(c) if he has been convicted of an offence involving moral
turpitude, or
(d) if he has directly or indirectly any interest in any subsisting
contract made with, or in any work being done for, the
Corporation except as a share-holder (other than a Director)
in an incorporated company, provided that where he is a
share-holder, he shall disclose to the State Government the
nature and extent of the shares held by him in such company,
Or
(e) if he has any financial interest in any work undertaken by
the Corporation for execution.
6. The Chairman, the Vice-Chairman or any other member of the
Corporation may resign his office by giving notice in writing to the State
Government and, on such resignation being accepted by that Government,
shall be deemed to have vacated his office.
7. The State Government may remove from office the Chairman,
the Vice-Chairman or any other member of the Corporation, who—
(a) without excuse, sufficient in the opinion of the State
Government, is absent from more than four consecutive
meetings of the Corporation, or
(b) has, in the opinion of the State Government, so abused his
position as a member as to render his continuance on the
Corporation detrimental to the interests of the Corporation.
Resignation
of
Chairman,
Vice-
Chairman
and other
members.
Removal
from office
of Chairman,
Vice
Chairman
or other
members.
a member of the Corporation—
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The West Bengal Backward Classes Development and
Finance Corporation Act, 1995.
[West Ben. Act
(Sections 8-11.)
Validity of
acts and
proceedings.
Transaction
of
business.
Managing
Director,
General
Manager,
Chief
Accounts
Officer and
other staff.
Officers
and other
employees
of the
Corporation
not to have
any interest
in contract
etc.
8. No act or proceeding of the Corporation shall be invalid by reason
only of the existence of any vacancy amongst its members or any defect
in the constitution thereof.
9. (1) The Corporation shall meet at such time and place 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 as may
be provided by regulations made under this Act.
(2) The person to preside at a meeting of the Corporation shall be
the Chairman thereof or, in his absence from any meeting, the Vice-
Chairman, if any, or, in the absence of both the Chairman and the Vice-
Chairman, such member as may be chosen by the members present from
amongst themselves.
(3) All questions at a meeting of the Corporation shall be decided by
majority of votes of the members present and voting and, in the case of
equality of votes, the Chairman or, in his absence, any other person
presiding shall have a second or casting vote.
10. (1) The Corporation shall have a Managing Director, a General
Manager and a Chief Accounts Officer, who shall be appointed by the
State Government.
(2) The Corporation may appoint such other officers and employees
as it considers necessary for the efficient performance of its functions.
(3) The conditions of appointment, and the scales of pay, of the
officers and other employees of the Corporation shall,—
(a) as respects the Managing Director, the General Manager
and the Chief Accounts Officer, be such as may be prescribed;
and
(b) as respects the other officers and employees, be such as may,
subject to the approval of the State Government, be
determined by regulations made under this Act.
(4) The Managing Director shall be the executive head of the
Corporation and all other officers and employees of the Corporation shall
be subordinate to him.
11. No person who has, directly or indirectly by himself or by his
partner or agent, any share or interest in any contract, by or on behalf of
the Corporation or in any work undertaken by the Corporation, shall
become or remain an officer or other employee of the Corporation.
288
The West Bengal Backward Classes Development and
Finance Corporation Act, 1995.
XIX of 1995.]
(Sections 12-14.)
12. The Corporation may, subject to such conditions and limitations
as it may specify, authorise the Managing Director to exercise such powers
and perform such duties as it may deem necessary for the efficient
administration of its business.
13. All orders and decisions of the Corporation shall be authenticated
by the signature of the Chairman or any other member authorised by the
Corporation in this behalf and all other instruments issued by the
Corporation shall be authenticated by the signature of the Managing
Director or by any other officer of the Corporation authorised by the
Managing Director in this behalf.
14. (1) Subject to the provisions of this Act, the functions of the
Corporation shall be to undertake generally the task of economic welfare
of the members of the backward classes through industrial and commer-
cial activities.
(2) In particular and without prejudice to the generality of the
foregoing provisions of this section, the functions of the Corporation
shall be—
(i) to plan and promote training programmes for increasing
the skill and efficiency in different traditional occupations
and to establish vocational institutes for the purpose;
(ii) to promote employment opportunities in various trade and
crafts, and to sanction stipends for training in different
training institutes;
(iii) to provide necessary infrastructure in connection with all
traditional occupations;
(iv) to encourage and undertake setting up of manufacturing and
processing units on commercial basis;
(v) to promote entrepreneurship by sponsoring self-employment
programmes in different trades, crafts, and business with
the assistance of various financial institutions;
(vi) to arrange the supply of necessary inputs at reasonable prices
for different trades and crafts and to acquire and instal
suitable machinery and equipments for the purpose of hiring
out;
(vii) to plan, promote and undertake, on its own or in
collaboration with such agencies as may be approved by
the Corporation, programmes of agricultural development,
marketing, processing, supply and storage of agricultural
produce, small scale industry, building construction,
transport and such other business, trade or activity as may
be approved in this behalf by the State Government;
Conferment
of powers on
Managing
Director.
Authentica-
tion.
Functions
of the
Corporation.
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The West Bengal Backward Classes Development and
Finance Corporation Act, 1995.
[West Ben. Act
Powers of the
Corporation.
Acquisition
of land.
(Sections 15, 16.)
(viii) to arrange for in-service training, apprenticeship and
dealership in different factories, commercial organisations
and industrial complexes;
(ix) to provide financial assistance by way of grants, subsidies
and loans, in cash or in kind, for such purposes as may be
approved by the Corporation and also by providing cash
credit accommodation against hypothecation of products;
(x) to find out resources for financing all programmes to be
undertaken by the Corporation and, to that end, to receive
loans, grants and gifts, raise loans, issue bonds and
debentures, and draw, make, accept, discout, execute and
issue promissory notes, bills of exchange, hundies, bills,
warrants, debentures and other negotiable instruments;
(xi) to invest, or to deposit, surplus funds in Government
securities or in such other means as may be approved by the
Corporation;
(xii) to continue and to run the works and programmes transferred
to the Corporation by the State Government for operation
and to adopt suitable changes for their better execution;
(xiii) to discharge such other functions as may be prescribed or as
are supplemental, incidental or consequential to any of the
functions conferred on it under this Act.
15. Subject to the provisions of this Act, the Corporation shall have
power—
(a) to acquire or hold such property, both movable and
immovable, as the Corporation may deem necessary for the
purpose of any of its functions and to lease, sell or otherwise
transfer any property held by it;
(b) to purchase by agreement or to take on lease or under any
form of tenancy any land and to erect thereon such buildings
as may be necessary for the purpose of carrying on its
undertakings;
(c) to enter into, or to perform, such contracts as may be
necessary for the discharge of its functions and the exercise
of its powers under this Act;
(d) to provide facilities for the consignment, storage and delivery
of goods;
(e) to do, with the prior approval of the State Government, all
other things to facilitate the proper carrying on of the
business and the functions of the Corporation.
16. The Corporation may take steps for acquisition of any land for
discharging any of its functions under this Act in accordance with the
provisions of the Land Acquisition Act, 1894. 1 of 1894.
290
The West Bengal Backward Classes Development and
Finance Corporation Act, 1995.
XIX of 1995.]
(Sections 17-22.)
17. It shall be the general principle of the Corporation that in carrying
on its undertakings it shall act on business principles
18. (I) The State Government may provide to the Corporation such
capital as in the form of equity the State Government may consider
necessary for the purpose of carrying out all or any of its functions under
this Act, subject to such terms and conditions, not inconsistent with
the provisions of this Act, as the State Government may determine.
(2) The Corporation may supplement its capital by the issue of shares
when so authorised by the State Government.
(3) The authorised capital of the Corporation shall be one hundred
crores of rupees which shall be divided into such number of shares as the
State Government may determine, and the number of shares which may
be subscribed by the State Government and the members of the public
shall also be determined by the State Government:
Provided that the value of the shares to be subscribed by the State
Government shall at any point of time be not less than fifty-one per cent
of the authorised capital.
(4) The allotment of shares to the members of the public under sub-
section (3) shall be made by the Corporation in such manner as may be
prescribed.
(5) The shares of the Corporation shall not be transferable except in
accordance with such rules as may be made under this Act.
(6) The Corporation may, at any time, with the previous approval of
the State Government, redeem the shares issued to the members of the
public in such manner as may be prescribed.
19. If after the issue of shares under sub-section (2) of section 18,
the Corporation requires any further capital, the Corporation may, with
the previous sanction of the State Government, raise such additional
capital by the issue of new shares and the provisions of sub-sections (3),
(4), (5) and (6) of section 18 shall mutatis mutandis apply to such
shares.
The Corpora-
tion to act on
business
principles.
Capital
of the
Corporation.
Additional
capital.
20. The shares of the Corporation shall be guaranteed by the State Guarantee
Government as to the payment of the principal. by State
Government
in respect
of shares.
21. All receipts of the Corporation shall be carried into its general Receipts
fund and all payments by the Corporation shall be made therefrom. into, and
payments
from, the
general fund
of the
Corporation. 22. (1) The Corporation shall pay dividends on shares at such rate Dividends
as may from time to time be fixed by the State Government, subject to on shares.
291
The West Bengal Backward Classes Development and
Finance Corporation Act, 1995.
[West Ben. Act
(Sections 23-26.)
any general limitations which may be imposed by the State Government,
and the payment of such dividend shall be deemed to be a part of the
expenditure of the Corporation.
(2) Notwithstanding anything contained in sub-section (1), the State
Government shall not provide any money for the purpose of payment of
dividend by the Corporation.
23. (1) The Corporation shall make such provisions for reserve and
other specially denominated funds as the State Government may from
time to time direct.
(2) The management of the funds referred to in sub-section (1), the
sums to be carried from time to time to the credit thereof and the
application of the money comprised therein shall be determined by the
Corporation.
(3) None of the funds referred to in sub-section (1) shall be utilised
for any purpose not connected with the functions of the Corporation
without the previous approval of the State Government.
Expenditure 24. The Corporation shall have power to spend such sums as it thinks
from fund. fit on objects authorised under this Act, and such sums shall be treated
as expenditure payable out of the general fund of the Corporation or the
funds referred to in sub-section (1) of section 23, as the case may be.
25. (1) The Corporation shall, by such date in each year as may be
prescribed, prepare and submit to the State Government for approval the
budget for the next financial year showing the estimated receipts and
expenditure during that financial year in such form as may be prescribed.
(2) The Corporation may sanction any reappropriation within the
grant from one head of expenditure to another or from a provision made
for one work to that in respect of another, subject to the condition that
the aggregate of the grant is not exceeded.
(3) The Corporation may, with the prior approval of the State
Government, incur expenditure within such limits and subject to such
conditions as may be prescribed, in excess of the limit provided in the
budget approved by the State Government uder any head of expenditure
or in connection with any particular work.
(4) A copy of the budget shall be placed before the State Legislature
a soon as may be after the budget has been approved by the State
Government.
Audit by
auditor
appointed
by State
Government.
26. (1) The Corporation shall cause to be maintained books of
account and other books in relation to its accounts in such form and in
such manner as may be prescribed.
(2) The Accounts of the Corporation shall be audited by the Auditor
appointed by the State Government in this behalf at such times and in
such manner as may be prescribed.
Reserve and
other funds.
Budget.
292
The West Bengal Backward Classes Development and
Finance Corporation Act, 1995.
XIX of 1995.]
(Sections 27-29.)
(3) As soon as the accounts of the Corporation have been audited,
the Corporation shall send a copy thereof together with a copy of the
report of the Auditor thereon to the State Government.
27. The State Government may issue to the Corporation general Power of
instructions to be followed by the Corporation and such instructions may State
Gove mment include directions relating to the recruitment, and the conditions of to issue
service, and training, of its employees, the wages to be paid to the instructions.
employees, the reserves to be maintained by it and the disposal of its
property, movable or immovable, and the Corporation shall be bound to
follow such instructions.
28. (1) The Corporation shall furnish to the State Government such Furnishing of
returns, statistics, accounts and other information with respect to its returns etc.
property or activities or in regard to any proposed work as the State
Government may from time to time require.
(2) The Corporation shall also furnish to the State Government an
annual report on its working as soon as may be after the end of each
year, and a copy of the annual report shall be placed before the State
Legislature as soon as may be after it is received by the State Government.
29. (1) The State Government may, by order published in the Official Gazette, supersede the Corporation for such period as may be specified
in the order after giving a reasonable opportunity to the Corporation to
show cause against the order proposed to be issued and after considering
the objection, if any, of the Corporation:
Provided that it shall not be necessary to give any opportunity to the
Corporation to show cause against the order proposed to be issued if the
State Government is of the opinion that it is neither expedient nor
necessary to do so in the public interest.
(2) Upon the publication of the order under sub-section (1)
superseding the Corporation,—
(a) all the members of the Corporation shall as from the date of
supersession vacate their respective offices as such members;
(b) all the powers and duties which may by or under the
provisions of this Act or of any other law for the time being
in force be exercised or performed by or on behalf of the
Corporation shall during the period of supersession be
exercised and performed by such person or persons as the
State Goverment may direct;
(c) all property vested in the Corporation shall during the period
of supersession vest in the State Government.
Supersession
of the
Corporation.
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Finance Corporation Act, 1995.
[West Ben. Act
Liquidation
of the
Corporation.
Recovery of
sums due.
Power to
make rules.
(Sections 30-32.)
(3) On the expiration of the period of supersession as specified in
the order issued under sub-section (1), the State Government may—
(a) extend the period of supersession for such further period as
it may consider necessary, or
(b) reconstitute the Corporation in the manner provided in this
Act for establishing the Corporation.
30. No provision of any law relating to the winding up of companies
or corporations shall apply to the Corporation and the Corporation shall
not be placed in liquidation save by an order of the State Government
and save in such manner as may be directed by the State Government.
31. Any sum payable to the Corporation shall be recoverable as an
arrear or land-revenue under the Bengal Public Demands Recovery Act,
1913.
32. (1) The State Government may, by notification, make rules to
give effect to the provisions 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:—
(a) the conditions and manner of appointment and election of
members of the Corporation, the representation in the
Corporation of the State Government, and where shares are
issued to the members of the public under section 18 or
section 19, the representation of such share-holders, and
generally all matters relating to the constitution of the
Corporation;
(b) the remuneration, allowance or fees to be paid to the
members of the Corporation;
(c) the term of office of members of the Corporation and the
manner of filling casual vacancies in the offices of such
members;
(d) the number of the members necessary to constitute a quorum
at a meeting of the Corporation;
(e) the conditions of appointment, service and scales of pay of
the Managing Director, the General Manager, and the Chief
Accounts Officer;
(f) the manner in which the shares of the Corporation shall be
allotted, transferred or redeemed;
(g) the manner in which the net profits of the Corporation shall
be utilised;
Ben. Act III
of 1913.
294
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Finance Corporation Act, 1995.
XIX of 1995.]
(Section 33.)
(h) the date by which, and the form in which, the budget shall
be prepared and submitted in each year and the limits and
conditions under which the Corporation may incur
expenditure in excess of the limit provided in the budget
under section 26;
(i) the form and the manner in which the accounts of the
Corporation shall be maintained;
(j) the time at which and the manner in which the accounts of
the Corporation shall be audited;
(k) the. form in which returns, statistics and reports shall be
submitted under section 28;
(1) any other matter which has to be or may be prescribed.
33, (1) The Corporation may, with the previous sanction of the State Regulations. Government, make regulations, not inconsistent with this Act and the
rules made thereunder, for the administration of the affairs of the Corporation.
(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 time and place of meetings of the Corporation and the
procedure to be followed in regard to trasaction of business
at such meetings;
(b) the conditions of appointment and service, and the scales of
pay, of officers and other employees of the Corporation other
than the Managing Director, the General Manager and the
Chief Accounts Officer.
295

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