The West Bengal Scheduled Castes Development And Finance Corporation Act, 1976

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act XXXIX of 1976 
THE WEST BENGAL SCHEDULED CASTES 
DEVELOPMENT AND FINANCE 
CORPORATION ACT, 1976. 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta 
Gazette, Extraordinary, of the 23rd July, 1976.] 
[23rd July, 1976.] 
An Act to establish a Scheduled Castes Development and Finance 
Corporation in West Bengal. 
WhEREAS it is expedient to provide for the establishment of a 
Scheduled Castes Development and Finance Corporation in 
West Bengal; 
It is hereby enacted in the Twenty-seventh Year of the Republic of 
India, by the Legislature of West Bengal, as follows:- 
1. (1) This Act may be called the West Bengal Scheduled Castes 
Development and Finance Corporation Act, 1976. 
(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 in the Official Gazette, appoint. 
2. In this Act, unless there is anything repugnant in the subject or Definitions. 
context,— 
(a) "the Corporation" means the Scheduled Castes Development 
and Finance Corporation established under section 3; 
(b) "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; 
(c) "prescribed" means prescribed by rules made under this Act; 
(d) "Scheduled Castes" means such castes, races or tribes or parts 
of or groups within such castes, races or tribes as are specified 
from time to time by notification under article 341 of the 
Constitution of India; 
(e) "traditional occupation" means caste-based occupations such as 
those followed by the Muchis, Doms, Dhobas, Jalias, Mals, etc. 
199 
Short title, extent and 
commence-
ment. 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
[West Ben. Act 
(Sections 3, 4.) 
Incorpora- 	 3. (1) The State Government may, by notification in the Official 
tier. 	 Gazette, establish a Scheduled Castes Development and Finance 
Corporation for 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. 
Constitution 	 4. (1) The Corporation shall consist, of the following members, 
of the 	 namely:— Corporation. 
(a) the Secretary, Department of Agriculture and Community 
Development, Government of West Bengal, ex-officio; 
(b) the Secretary, Department of Animal Husbandry and Veterinary 
Services, 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 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; 
(g) such number of other members not exceeding ten but not less 
than five, as the State Government may, by notification in the 
Official Gazette, appoint: 
Provided that at least five members of the Corporation shall 
be from amongst the members of the Scheduled Castes. 
(2) The State Government shall appoint one of the members as the 
Chairman and may, if it thinks fit, appoint another member as the 
Vice-Chairman 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 of, and the manner of filling casual vacancies 
among, the members of the Corporation shall be such as may be 
prescribed. 
West Ben. 
Act XIV 
of 1959. 
200 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
XXXIX of 1976.] 
(Sections 5-9.) 
5. A person shall be disqualified for being chosen as, and for Disquali-
being, a member of the Corporation— fications 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 shareholder (other than a Director) in 
an incorporated company, provided that where he is a 
shareholder, 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, Vice-Chairman or any other member of the Resignation 
Corporation may resign his office by giving notice in writing to the v oficCeh-airman, State Government and, on such resignation being accepted by that Chairman 
Government, shall be deemed to have vacated his office. 	 and  members. 
7. The State Government may remove from office the Chairman, Removal 
Vice-Chairman or any other member of the Corporation who— from 
office of 
i (a) without excuse, sufficient in the opinion of the State C 
V
a
ice
man, 
Government, is absent from more than four consecutive Chairman or 
meetings of the Corporation, 	 members. 
(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. 
8. No act or proceeding of the Corporation shall be invalid by Validity of 
acts and reason only of the existence of any vacancy amongst its members or any proceedings. defect in the constitution thereof. 
9. (1) The Corporation shall meet at such time and place and Transaction 
shall, subject to the provisions of sub-sections (2) and (3), observe such of business. 
rules of procedure in regard to transaction of business at its meetings as 
may be provided by regulations made under this Act. 
201 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
[West Ben. Act 
(Sections 10-12.) 
(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 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. 
Administrative 	 10. (1) The Corporation shall have an Administrative Officer and 
Officer 	 a Chief Accounts Officer, both of whom shall be appointed by the and Chief 
Accounts 	 State Government. Officer 
and other 
staff. 
	
	 (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 of officers and employees and 
the scales of pay of the officers and employees of the Corporation 
shall— 
(a) as respect the Administrative Officer and the Chief Accounts 
Officer be such as may be prescribed; and 
(b) as respect 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 Administrative Officer shall be the Executive Head of the 
Corporation and all other officers and employees of the Corporation 
shall be subordinate to him. 
Officers and 	 11. No person who has directly or indirectly by himself or his 
employees partner or agent, any share or interest in any contract, by or on behalf of of Corpora- 
tion not to 	 the Corporation or in any work undertaken by the Corporation shall have any 	 become or remain an officer or employee of the Corporation. interest in 
contract, etc. 
Conferment 	 12. The Corporation may authorise the Administrative Officer, of powers 	 subject to such conditions and limitations as it may specify, to exercise on Adminis- 
trative 	 such powers and perform such duties as it may deem necessary for the Officer. 	 efficient administration of its business. 
202 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
XXXIX of 1976.] 
(Sections 13, 14.) 
13. All orders and decisions of the Corporation shall be Authenti-
authenticated by the signature of the Chairman or any other member carton. 
authorised by the Corporation in this behalf and all other instruments 
issued by the Corporation shall be authenticated by the signature of the 
Administrative Officer or by any other officer of the Corporation 
authorised by the Administrative Officer 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 Scheduled Castes through industrial and 
commercial 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 trades 
and crafts and to sanction stipends for training in 
different training institutes; 
(iii) to provide necessary infra-structures in connection with 
all traditional occupations such as establishing 
`dhobighats', 'tanning grounds', 'fisheries', etc.; 
(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 financing 
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 collabo-
ration 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; 
203 
Functions 
of the 
Corporation. 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
[West Ben. Act 
(Section 15.) 
(viii) to arrange for in-service training, apprenticeship, dealer-
ship, etc., in different factories, commercial organisations 
and industrial complexes; 
(ix) to provide financial assistance by way of grants, subsidies 
and loans in cash or kind for such purposes as may be 
approved by the Corporation and also by providing cash 
credit accommodation against hypothecation of their 
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, 
draw, make, accept, discount, execute and issue 
promissory notes, bills of exchange, hundies, bills, 
warrants, debentures and other negotiable instruments; 
(xi) to invest or deposit surplus funds in Government 
securities or in such other means to be approved by the 
Corporation; 
(xii) to continue and 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. 
Powers 
of the 
Corporation. 
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 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) with the prior approval of the State Government to do all other 
things to facilitate the proper carrying on of the business and 
the functions of the Corporation. 
204 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
XXXIX of 1976.] 
(Sections 16-19.) 
16. The Corporation may take steps for acquisition of any land Acquisition 
for discharging any of its functions under this Act in the manner of land.  
1 of 1894. 	 provided in the Land Acquisition Act, 1894 and such acquisition shall 
be deemed to be acquisition for a public purpose within the meaning of 
the said Act. 
17. It shall be the general principle of the Corporation that in Corporation 
to act on carrying on its undertakings it shall act on business principles. 	 business 
principles. 
18. (1) The State Government may provide to the Corporation such 
capital as the State Government may consider necessary for the purpose 
of carrying out any or all 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 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 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 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. 
205 
Capital 
of the 
Corporation. 
Additional 
capital. 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
[West Ben. Act 
(Sections 20-25.) 
Guarantee 	 20. The shares of the Corporation shall be guaranteed by the by State 	 State Government as to the payment of the principal. Government 
in respect 
of shares. 
Borrowing 	 21. (1) The Corporation may, with the previous approval of the 
botheration. State Government, borrow money in the open market or otherwise for 
carrying out any of its functions under this Act. 
(2) 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 
recommendation of the Corporation, fix at the time the money is 
borrowed. 
Receipts 	 22. All receipts of the Corporation shall be carried into its general into and 	 fund and all payments by the Corporation shall be made therefrom. payments 
from the 
general fund 
of the 
Corporation. 
Dividends 	 23. The Corporation shall pay dividends on shares at such rate as on shares. 	 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. 
Reserve 
and other 
funds. 
Expenditure 
from the 
fund. 
24. (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. 
25. 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 exenditure payable out of the general fund of the Corporation 
or the funds referred to in sub-section (1) of section 24, as the case may 
be. 
206 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
XXXIX of 1976.] 
(Sections 26-29.) 
26. (1) The Corporation shall, by such date in each year as may be Budget. 
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. 
27. (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. 
(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. 
Audit by 
Auditor 
appointed 
by State 
Govern-
ment. 
28. The State Government may issue to the Corporation general Power of 
instructions to be followed by the Corporation and such instructions State 
Govem- 
may include directions relating to the recruitment, the conditions of ment to 
service and training of its employees, the wages to be paid to the issue 
instruc- 
employees, the reserves to be maintained by it and the disposal of its Lions. 
property, movable or immovable, and the Corporation shall be bound to 
follow such instructions. 
29. (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. 
207 
Furnishing 
of returns, 
etc. 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
[West Ben. Act 
(Sections 30, 31.) 
(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. 
supersession 	 30. (1) The State Government may, by an order published in the of the 
Corporation. Official Gazette, supersede the Corporation for such period as may be 
specified in the order after giving 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 public interest. 
(2) Upon the publication of a notification under sub-section (1) 
superseding the Corporation— 
(a) all the members of the Corporation 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 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. 
(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 in the manner provided in this Act 
for establishing the Corporation. 
Liquidation 	 31. No provision of any law relating to the winding up of of the 	 companies or corporations shall apply to the Corporation and the Corporation. 
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. 
208 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
XXXIX of 1976.] 
(Sections 32, 33.) 
32. Any sum payable to the Corporation shall be recoverable as an Recovery of 
Ben. Act 111 arrear of land-revenue under the Bengal Public Demands Recovery Act, sums due. 
of 1913. 	 1913. 
33. (1) The State Government may, by notification in the Official Power to 
Gazette, make rules to give effect to the provisions of this Act. 	 make rules.  
(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 shareholders 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 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; 
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 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 Corpora-
tion 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 29; 
(1) any other matter which has to be or may be prescribed. 
209 
(g) 
The West Bengal Scheduled Castes Development and 
Finance Corporation Act, 1976. 
[West Ben. Act XXXIX of 1976.] 
(Section 34.) 
Regulations. 	 34. (1) The Corporation may, with the previous sanction 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 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 transaction of business at 
such meetings; 
(b) the conditions of appointment and service and the scales of pay 
of officers and employees of the Corporation other than the 
Administrative Officer and the Chief Accounts Officer. 
210 

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