The West Bengal Development Corporation Act, 1954

West Bengal Act XIV of 1955 
THE WEST BENGAL DEVELOPMENT CORPORATION 
ACT, 1954. 
[Passed by the West Bengal Legislature.] 
[Assent of the Governor was first published in the Calcutta Gazette, Extra. 
ordinary, of the 20th April, 1955.] 
An Act to establish a Developmen4 Corporation for West 
Bengal. 
WHEREAS it is expedient to provide for the establishment 
of a Development Corporation for West Bengal; 
It is hereby enacted as follows:- 
1. (1) This Act may be called the West Bengal Dove- Short title, 
'opulent Corporation Act, 1954. 	 extent and 
commence- 
(2) It extends to the whole of West Bengal. 	 meat. 
(3) It shall come into force on such date as the State 
Government may, by notification in the Official Gazette, 
appoint. 
2. In this Act, unless there is anything repugnant in Defini- 
the subject or context,— 	 gene. 
(a) "the Corporation" means the Development Corpora-
tion established under section 3; 
(b) "Board" means an Executive Board constituted 
under section 13; 
(c) "prescribed" means prescribed by rules made under 
this Act. 
3. (1) The State Government may, by notification in Inoorpora-
the Official Gazette, establish a Development Corporation for tion. 
West Bengal. 
 
(2) The Corporation shall be a body corporate by the 
name notified under sub-section (1) and having perpetual 
succession and a common seal and shall by the said name sue 
and be sued. 
4. (1) The Corporation shall consist of a Chairman and Constitu -
such number of other members, not exceeding ten, as the tion of the 
Corpora- State Government may think fit to appoint. tion. 
(2) The State Government may, if it so thinks fit, 
appoint one of the other members as the Vice-Chairman of 
the Corporation. 
(3) Rules made under this Act shall provide for the 
representation of the State Government in the Corporation 
and in the event of the capital of the Corporation being 
raised by the issue of shares to other parties, provision shall 
also be made for the representation of such share-holders in 
the Corporation and the manner in which the representatives 
shall be elected by such share-holders. 
2 The West Bengal Development Corporation Act, 1954. 
[West Ben. Act 
Resigna-
tion of 
Chairman 
and 
members. 
Removal 
from office 
of Chair-
man or 
member. 
Validity 
of ants 
and 
proceed-
hags. 
Transac-
tion of 
business. 
Adminis-
trative 
Officer and 
Chief 
Accounts 
Officer 
and other 
staff. 
• 
(Sections 5-9.) 
(4) The term of office of, and the manner of filling casual 
vacancies among, the members of the Corporation shall be 
such as may be prescribed. 
5. The Chairman or any other member of the Corpora-
tion 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. 
6. The State Government may remove from office the 
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 conse-
cutive meetings of the Corporation, 
(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. 
7. 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. 
8. (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 them-
selves to preside. 
(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. 
9. (I) The Corporation shall have an Administrative 
Officer and a Chief Accounts Officer, both of whom shall be 
appointed by the State Government. 
(2) The Corporation may appoint such other officers and 
servants as it considers necessary for the efficient performance 
of its functions. 
(3) The conditions of appointment of officers and servants 
and the scales of pay of the officers and servants of the 
Corporation shall— 
(a) as respect the Administrative Officer and the Chief 
Accounts Officer be such as may be prescribed; 
And 
The West Bengal Development Corporation Act, 1954. 3 
XIV Of 1955.] 
(Sections 10-15.) 
(b) as respect the other officers and servants be such as 
may, subject to the approval of the State Govern-
ment, be determined by regulations made under 
this Act. 
(4) The Administrative Officer shall be the Executive 
Head of the Corporation and all other officers and servants of 
the Corporation shall be subordinate to him 
(5) The Chief Accounts Officer shall have the right to 
record his views on every proposal involving expenditure 
from the funds of the Corporation prior to the consideration 
of such proposal by the Corporation. 
10. No person who has directly or indirectly by himself 
or his partner or agent, any share or interest in any contract, 
by or on behalf of the Corporation or in any scheme under-
taken by the Corporation shall become or remain an officer 
or servant of the Corporation. 
Officers 
and 
servants 
of Cor-
poration 
not to 
have any 
interest 
in- con-
tract, etc. 
11. The Corporation may authorise the Administrative Confer. 
Officer, subject to such conditions and limitations as it may ment of 
pA 	 se oweran 
specify, to exercise such powers and perform such duties as 
it may deem necessary for the efficient administration of its bra ti ve  
business. 	 Officer. 
12. 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 authen-
ticated by the signature of the Administrative Officer or by 
any other officer of the Corporation authorised by the 
Administrative Officer in this behalf. 
13. The State Government may, after ascertaining the 
views of the Corporation, by notification in the Official 
Gazette, constitute one or more Executive Boards consisting 
of such number of persons, not exceeding seven, on such terms 
and for the purpose of executing any particular scheme or 
schemes as may be specified in the notification. 
14. (1) The Board or Boards may appoint such officers 
and servants as may be necessary for the performance of their 
functions subject to sanction by the Corporation. 
(2) The Administrative Officer of the 'Corporation shall 
have general powers of superintendence and control over the 
officers and servants appointed by the Board or Boards and 
the Chief Accounts Officer of the Corporation shall have the 
right to advise the Board or Boards on financial matters. 
15. The Corporation may delegate to the Board or Boards 
all or any of its powers subject to such conditions and limita-
tions as may be specified, so however that the Board or Boards 
shall function subject to the general control and supervision 
by the Corporation. 
Authenti-
cation. 
Executive 
Boards. 
Officers 
and 
servants 
of Boards. 
Delega-
tion of 
powers to 
Boards. 
Develop-
ment 
Schemes. 
4 The West Bengal Development Corporation Act, 1954. 
[West Ben. Act 
(Sections 16-19.) 
16. The State Government may, from time to time by 
notification in the Official Gazette, authorise the Corporation 
to undertake development schemes in respect of such objects 
as may be specified and in particular in respect of— 
(1) reclamation and improvement of land for establishing 
townships or for executing housing schemes or for 
agriculture; 
(2) water-supply; 
(3) drainage and irrigation; 
(4) disposal of sewage and manufacture of sewage gas; 
(5) fisheries; 
(6) dairy farms; 
(7) poultry and live-stock; 
(8) manufacture of salt. 
Powers 	 17. Subject to the provisions of this Act, the Corpora- of the 	 tion shall have power— Corpora- 
tion. 	 (a) to acquire or hold such property both movable and 
immovable as the Corporation may deem necessary 
for the purpose of any of its activities and to lease, 
sell or otherwise transfer any property held by it; 
Explanation.—For the purpose of compulsory acquisi-
tion of immovable property, the Corporation shall 
be deemed to be a company within the meaning 
of the provisions of clause (e) of section 3 of the 
Land Acquisition Act, 1894; 
(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; 
(a) to enter into or perform such contracts as may be 
necessary for the performance of its duties and the 
exercise of its powers under this Act; 
(d) to provide facilities for the consignment, storage and 
delivery of goods; 
(e) with the prior approval of the State Government to 
do all other things to facilitate the proper carry-
ing on of the business and the functions of the 
Corporation. 
18. It shall be the general principle of the Corporation 
that in carrying on its undertakings it shall act on business 
principles. 
19. (1) The State Government may provide to the 
Corporation any capital that may be required by it for the 
purpose of carrying on its undertakings or for purposes con-
nected therewith on such terms and conditions not incon-
sistent with the provisions of this Act as the State 
Government may determine. 
Corpora-
tion to 
act on 
business 
principles. 
Capital 
of the 
Corpora-
tion. 
I of 
1894. 
The Wes Bengal Development Corporation Act, 1954. . 5 
XIV of 1955.] 
• (Sections 20-23.) 
(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 
divided into such number of shares as the State Government 
may determine, and the number of shares which may be 
subscribed by tie State Government and other parties shall 
also be determined by the State Government; 
Provided that the value of the shares to be subscribed by 
the State Government shall not be less than fifty-one per 
cent. of the authorised capital. 
(4) The allotment of shares to other parties mentioned in 
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 transfer-
able 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 other parties in such manner as may be prescribed. 
20. If after the issue of shares under sub-section (2) of 
section 19, 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 19 shall apply mutatis mutandis to such shares. 
21. The shares of the Corporation shall be guaranteed 
by the State Government as to the payment of the principal 
and as to the payment of annual dividend at such rate not 
being less than five per cent. per annum or more than seven 
per cent. per annum, as may be fixed by the State Govern-
ment by notification published in the Official Gazette at the 
time of issuing the shares. 
22. (1) The Corporation may, with the previous 
approval of the State Government, borrow money in the 
open market or otherwise for the purpose of raising its 
working capital. 
(2) Money borrowed under sub-section (1) by the Corpora-
tion shall be guaranteed by the State Government as to the 
repayment of the principal and the payment of interest at 
such rate not being less than four per cent. per annumr, as 
the State Government may, on the recommendation of the 
Corporation, fix at the time the money is borrowed. 
23. All receipts of the Corporation shall be carried into 
its general fund and all payments by the Corporation shall 
be made therefrom. 
Additional 
capital. 
Guarantee 
by State.  
Govern-
ment in 
respect of 
shares. 
Borrowing 
by the 
Corpora-
tion. 
Receipts 
into and 
payments 
from the 
general 
fund of the 
Corpora-
tion. 
Grants to 
Board or 
Boards. 
Dividends 
on shares. 
Reserve 
and other 
funds. 
Expendi-
ture 
from the 
funds. 
Budget. 
Audit by 
Auditor 
appointed 
by State 
Govern-
Inent. 
6 	 The West Bengal Development Corporation Act, 1954. 
[West Ben. Act 
(Sections 24-29.) 
24. The Corporation shall make suitable grants to the 
Board or Boards for executing the schemes entrusted to the 
Board or Boards. 
25. The Corporation shall pay dividends on shares at 
such rate as may from time to time be fixed by the State 
Government wider section 21 and subject to 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. 
26. (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. 
27. The Corporation shall have power to spend such 
sums as it thinks 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 26, as the case may be. 
28. (1) The Corporation shall, by such date in each year 
as may be prescribed, prepare and submit to the State Govern-
ment 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 scheme to that in respect of 
another, subject to the condition that the aggregate of the 
grant is not exceeded. 
(3) The Corporation may, within such limits and subject 
to such conditions as may be prescribed, incur expenditure in 
excess of the limit provided in the budget approved by the 
State Government under any head of expenditure or in con-
nection with any particular scheme. 
(4) A copy of the budget shall be placed before the 
State Legislature as soon as may be after the same is 
prepared. 
29. (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. 
The West Bengal Development Corporation Act, 1954. 
XIV of 1955.] 
(Sections 30-32.) 
(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. 
30. The State Government may issue to the Corporation Power of  
general instructions to be followed by the Corporation and State  
such instructions may include directions relating to the went to to 
recruitment, the conditions of service and training of its issue 
employees, the wages to be paid to the employees, the reserves laetrile-
to be maintained by it and the disposal of its property, mov- ticint 
able or immovable, and the Corporation shall be bound to 
follow such instructions. 
31. (1) The Corporation shall furnish to the State Furnish-
Government such returns, statistics, accounts and other T or s  
information with respect to its property or activities or in etc. 
regard to any proposed scheme 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. 
32. (1) If the State Government is of opinion that the 
Corporation or a Board established under this Act is unable 
to perform or has made default in the performance of the 
duties imposed upon it by or under the provisions of this Act 
or has exceeded or abused its powers, the State Government 
may, by notification in the Official Gazette, supersede the 
Corporation or the Board for such period as may be specified 
in the notification: 
Provided that before issuing a notification under this sub-
section, the State Government shall give a reasonable time 
to the Corporation or the Board to show cause why it should 
not be superseded and shall consider the explanations and 
the objections, if any, of the Corporation or the Board. 
(2) Upon the publication of a notification under sub-
section (1) superseding the Corporation or a Board— 
(a) all the members of the Corporation or the Board 
shall as from the date of supersession vacate their 
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 be 
exercised or performed by or on behalf of the 
Corporation or the Board shall during the period 
of supersession be exercised and performed by 
such person or persons as the State Government 
may direct; 
(c) all property vested in the Corporation shall during 
the period of supersession vest in the State 
Government. 
Super-
session 
of the 
Corpora. 
tion or 
of the 
Boards. 
8 The West Bengal Development Corporation Act, 1954. 
Liquida-
tion of the 
Corpora-
tion. 
[West Ben. Act 
(Sections 33-35.) 
(3) On the expiration of the period of supersession, as 
specified in the notification issued under sub-section (1), the 
State Government may— 
(a) extend the period of supersession for such further 
term as it may consider necessary, or 
(b) reconstitute the Corporation or the Board in the 
manner provided in this Act for establishing -the 
Corporation or a Board. 
33. No provision of any taw relating to the winding 
up of companies or corporations shall apply to the Corpora-
tion and the Corporation shall not be placed in liquidation save 
by order of the State Government and save in such manner as 
may be directed by the State Government. 
34. The provisions of this Act shall have effect notwith-
standing anything to the contrary contained in any other law 
for the time being in force, and the State Government may 
delegate to the Corporation such of its powers or duties, or 
vest it with such powers and duties exercisable by local bodies, 
under any local or special law, in connection with the execu-
tion of schemes undertaken by the Corporation, as the State 
Government thinks fit. 
35. (1) The State Government may, by notification in the 
Official Gazette, 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 of 
members of the Corporation, the representation 
in the Corporation of the State Government and 
where shares are issued to other parties under 
section 19 or section 20, 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; 
Act to 
override 
other 
laws. 
Delega-
tion of 
powers 
and duties 
of the 
State 
Govern-
meat and 
of the 
local 
bodies in 
conneo-
tion with 
schemes 
under-
taken 
by the 
Corpora-
tion. 
Rules. 
The West Bengal Development Corporation Act s  1954. 9 
JCIV of 1955.] 
(Section 36.) 
(e) the term of office of members of the Corporation and 
the manner of filling casual vacancies among such 
members; 
(d) the number of the members necessary to constitute a 
quorum at a meeting of the Corporation; 
(e) the conditions of appointment and service and the 
scales of pay of the Administrative Officer 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; 
(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 Cor-
poration may incur expenditure in excess of the 
limit provided in the budget under section 28; 
(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 31; 
(1) any other matter which has to be or may be prescribed. 
36. (1) The Corporation may, with the previous sanction R eguia _ 
tf the State Government, make regulations not inconsistent tions. 
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 transac-
tion of business at such meetings; 
(h) the conditions of appointment and service and the 
scales of pay of officers and servants of the Corpora-
tion other than the Administrative Officer and the 
Chief Accounts Officer. 
WBGP-55/6-2431A-53/L 

‹ Prev All West Bengal acts Next ›