The West Bengal Minorities Development And Finance Corporation Act, 1995

GOVERNMENT OF WEST BENGAL 
LAW DEPARTMENT 
Legislative 
West Bengal Act XVIII of 1995 
THE WEST BENGAL MINORITIES 
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 Minorities Development and Finance Corporation 
in West Bengal. 
WHEREAS it is expedient to provide for the establishment of a Minorities 
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 Minorities 
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-
ment. 
2. In this Act, unless there is anything repugnant in the subject or Definitions. 
context,— 
(a) "the Corporation" means the West Bengal Minorities 
Development and Finance Corporation established under 
section 3; 
(b) "minorities" means the minorities based on religion such 
as Muslims, Christians, Sikhs, Buddhists, Zorestians 
(Parsis), JaMs and Jews and such other minorities within 
the purview of article 29 of the Constitution of India as the 
State Government may, by notification, specify from time 
to time; 
(c) "minority occupation" means a traditional occupation 
followed by the minorities; 
273 
The West Bengal Minorities Development and 
Finance Corporation Act, 1995. 
[West Ben. Act 
(Sections 3, 4.) 
(d) "notification" means a notification published in the Official 
Gazette; 
(e) "prescribed" means prescribed by rules made under this Act. 
Incorporation. 	 3. (1) The State Government may, by notification, establish a 
Corporation to be known as the West Bengal Minorities 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. 
Constitution 
of the 
Corporation. 
4. (1) The Corporation shall consist of the following members, 
namely:— 
(a) Minister-in-charge, Minority Affairs, Minority Welfare 
Department, ex officio Chairperson; 
(b) the Secretary, Department of Rural Development, 
Government of West Bengal, ex officio; 
(c) the Secretary, Department of Municipal Affairs, Government 
of West Bengal, ex officio; 
(d) the Secretary, Department of Cottage and Small Scale 
Industries, Government of West Bengal, ex officio; 
(e) the Special Secretary, Home Department, Government of 
West Bengal, ex officio; 
(f) the Managing Director of the Corporation; 
(g) the Managing Director, West Bengal Finance Corporation, 
ex officio; 
(h) such number of other members, not exceeding five, as the 
State Government may, by notification, appoint. 
(2) The State Government shall appoint, if it thinks fit, one of the 
members as the Vice-Chairperson of the Corporation. 
(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 \'>acancies in 
the offices, of the members of the Corporation shall be such as may be 
prescribed. 
274 
The West Bengal Minorities Development and 
Finance Corporation Act, 1995. 
XVIII of 1995.] 
(Sections 5-8.) 
5. A person shall be disqualified for being chosen as, and for being, Disqualifica- 
tions for 
a member of the Corporation— 	 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 if any work undertaken by 
the Corporation for execution. 
6. No act or proceeding of the Corporation shall be invalid by reason 
only of the existence or any vacancy amongst its members of any defect 
in the constitution thereof. 
7. (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 Chairperson thereof or, in his absence from any meeting, the Vice-
Chairperson, if any, or, in the absence of both the Chairperson and the 
Vice-Chairperson, 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 Chairperson or, in his absence, any other person 
presiding shall have a second or casting vote. 
8. (1) The Corporation shall have a Managing Director, a General Managing 
Chief Manager and .a Chief Accounts Officer, who shall be appointed by the Chieftor,  
State Government. 	 Accounts 
Officer and 
(2) The Corporation may appoint such other officers and employees other staff. 
as it considers necessary for the efficient performance of its functions. 
Validity of 
acts and 
proceedings. 
Transaction 
of business. 
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The West Bengal Minorities Development and 
Finance Corporation Act, 1995. 
[West Ben. Act 
(Sections 9-12.) 
(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. 
Officers and 
other 
employees 
of the 
Corporation 
not to have 
any interest 
in contract 
etc. 
Conferment 
of powers on 
Managing 
Director. 
Authentica-
tion. 
Functions 
of the 
Corporation. 
9. 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. 
10. 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. 
11. All orders and decisions of the Corporation shall be authenticated 
by the signature of the Chairperson 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. 
12. (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 minorities through industrial, commercial and cultural 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 minority occupations 
and to establish vocational institutes for the purpose; 
(ii) to promote employment opportunities in various trades, 
crafts and intellectual pursuits, and to sanction stipends for 
training in different training institutes; 
(iii) to provide necessary infrastructure in connection with all 
minority occupations; 
276 
The West Bengal Minorities Development and 
Finance Corporation Act, 1995. 
XVIII of 1995.] 
(Section 12.) 
(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, carfts, 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 install 
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 or Governments as may 
be approved by the Corporation, programmes of minority 
welfare and development schemes approved by the 
Department of Minority Welfare, Government of West 
Bengal, or the minority commission, if any; 
(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 
grants and gifts, raise loans, issue bonds and debentures, 
and draw, make, accept, discount, execute and issue 
promissory notes, bills of exchange, hundies, bills, warrants, 
and other negotiable instruments; 
(xi) to invest, or to deposit, surplus funds in Government 
securities or in such other means to 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 orient the economic schemes towards the objective of 
empowering the minorities to make use of the constitutional 
safeguards fully; 
(xiv) to function as a machinery for implementation of safeguards 
for the minorities of the State; 
277 
The West Bengal Minorities Development and 
Finance Corporation Act, 1995. 
[West Ben. Act 
(Sections 13-16.) 
(xv) to monitor its own sponsored schemes as well as the 
economic schemes being implemented under the minorities 
welfare programmes in consultation with the State level or 
the district level bankers' fora; 
(xvi) 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. 
Powers 
of the 
Corporation. 
Acquisition 
of land. 
The 
Corporation 
to act on 
business 
principles. 
Capital 
of the 
Corporation. 
13. 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. 
14. 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. 
15. It shall be the general principle of the Corporation that in carrying 
on its undertakings it shall act on business principles. 
16. (1) The State Government may provide to the Corporation such 
capital as 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. 
1 of 1894. 
278 
The West Bengal Minorities Development and 
Finance Corporation Act, 1995. 
XVIII of 1995.] 
(Sections 17-20.) 
(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 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 not be 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. 
17. If after the issue of shares under sub-section (2) of section 16, 
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 16 shall mutatis mutandis apply to such shares. 
18. The shares of the Corporation shall be guaranteed by the State 
Government as to the payment of the principal. 
19. (1) The Corporation may, with the previous approval of the State 
Government, borrow money in the open market or otherwise for carrying 
out any of its functions under this Act. 
(2) The money borrowed by the Corporation under sub-section (1) 
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 annum, as the State Government may, on the 
recommendations of the Corporation, fix at the time the money is 
borrowed. 
20. 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 
Government 
in respect 
of shares. 
Borrowing 
by the 
Corporation. 
Receipts 
into, and 
payments 
from, the 
general fund 
of the 
Corporation. 
279 
The West Bengal Minorities Development and 
Finance Corporation Act, 1995. 
[West Ben. Act 
(Sections 21-25.) 
Dividends 
on share. 
Reserved 
and other 
funds. 
21. The Corporation shall pay dividends on shares at such rate as 
may from time to time be fixed by the State Government, 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. 
22. (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 	 . 23, 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 22, as the case may be. 
Budget. 	 24. (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, 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 connection with any particular work. 
(4) A copy of the budget shall be placed before the State Legislature 
as soon as may be after the budget has been approved by the State 
Government. 
Audit by 
Auditor 
appointed 
by State 
Government. 
25. (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. 
280 
The West Bengal Minorities Development and 
Finance Corporation Act, 1995. 
XVIII of 1995.] 
(Sections 26-28.) 
(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. 
(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. 
26. The State Government may issue to the Corporation general 
instructions to be followed by the Corporation and such instructions may 
include directions relating to the recruitment, and the conditions of service 
and training, of its employees, the wages to be paid to the 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. 
27. (1) The Corporation shall furnish to the State Government such 
returns, statistics, accounts and other information with respect to its 
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. 
28. (1) The State Govrnment 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 shall 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 priod 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. 
Power of 
State 
Government 
to issue 
instructions. 
Furnishing of 
returns etc. 
Supersession 
of the 
Corporation. 
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The West Bengal Minorities Development and 
Finance Corporation Act, 1995. 
[West Ben. Act 
Liquidation 
of the 
Corporation. 
Recovery of 
sums due. 
Power to 
make rules. 
(Sections 29-31.) 
(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 term as it 
may consider necessary, or 
(b) reconstitute the Corporation in the manner provided in this 
Act for establishing the Corporation. 
29. 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 order of the State Government and 
save in such manner as may be directed by the State Government. 
30. Any sum payable to the Corporation shall be recoverable as an 
arrear of land revenue under the Bengal Public Demands Recovery Act, 
1913. 
31. (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 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 16 or section 17, 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 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, 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; 
(h) the date by which, and the form in which, the budget shall 
be prepared and submitted in each year and the limit and 
conditions under which the Corporation may incur 
expenditure in excess of the limit provided in the budget 
under section 24; 
Ben. Act III 
of 1913. 
282 
The West Bengal Minorities Development and 
Finance Corporation Act, 1995. 
XVIII of 1995.] 
(Section 32.) 
(i) the form and the manner in which the accounts of the 
Coiporation 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 27; 
(1) any other matter which has to be or may be prescribed. 
32. (1) The Corporation may, with the previous section of the State 
Government, make regulations not inconsistent with this Act and the 
rules made thereunder, for the administration of the affairs of the 
Corporation. 
(2) In paticular 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 transaction 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. 
Regulations. 
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