The Tamil Nadu Khadi and Village Industries Board Act, 1959

1. (1) This Act may be called the Tamilnadu Khadi and Village Industries Board Act 1959. (2) It extends to the whole of the State of Tamilnadu. (3) It shall come into force on such date as the Government may, by notification, appoint came into force on the 1st April 1960.

2. In this Act, unless the context otherwise requires :- (a) Board” means the Tamilnadu Khadi and Village Industries Board established under sub-section (1) of section 3; (b) “Government” means the Tamilnadu Government; (c) “Khadi” means any cloth woven on handlooms, in India from cotton, silk or woolen yarn, handspun in India or from a mixture of any two or all of such yarns; (d) “Khadi and Village Industries Commissions” means Khadi and Village Industries Commission established under section 4 of the Khadi and Village Industries Commission Act, 1956 (Central Act 61 of 1956); (e) “Member” means a member of the Board and includes the President; (f) “President” means the President of the Board; (g) “Secretary” means the Secretary of the Board appointed under clause of sub-section (2) of section 3; (h) “Village Industries” means- (i) all or any of the industries specified in the Schedule to the Khadi and Village Industries Commission Act, 1956 (Central Act 61 of 1956); and (ii) any industry specified in this behalf by the Government by notification in consultation with the Board; and includes any other industry deemed to be specified in the said Schedule by reason of a notification under section 3 of the said Act.

3. 1. With effect from such date as the Government may, by notification fix, in this behalf, there shall be established a Board to be called the Tamilnadu Khadi and Village Industries Board. It shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract and may, by the said name, sue and be sued. 2. (a) The Board shall consist of not more than fifteen members including the President, the Vice-President, and the Secretary (where the Secretary is appointed by the Government from amongst the members). The appointment of members except the President, shall be made by the Government and shall be published in the Tamilnadu Gazette. (b) The Minister in charge of Khadi development in the State shall be the President of the Board. (c ) The Vice-President shall be elected from amongst the non-official members of the Board. (d) The Government may, in consulation with the Board, appoint a person who may or may not be a member of the Board to be the Secretary of the Board. (e) The majority of the members shall be non – officials. (f) The Government shall appoint as members:- Provided that where a person other than a member is appointed as Secretary, he shall not be entitled to vote at meetings of the Board. (i) only such non-officials as have shown an active interest in the production and development of Khadi or in the development of Village Industries, and (ii) Officials.

4. Any member may resign his office by giving notice in writing to the Government and on such resignation being notified in the Tamilnadu Gazette by the Government, he shall be deemed to have vacated his office.

5. No Act or proceedings of the Board shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereof.

6. (1) The Board may associate with itself in such manner and for such purposes as may be determined by regulations made under this Act, any person whose assistance or advice it may desire in complying with any of the provisions of this act. (2) A person associated with the Board under sub-section (1) for any purpose shall have the right to take part, in the discussions of the Board relevant to that purpose but shall not have the right to vote and shall not be a member for any other purpose. (3) The Government may, by order, depute one or more officers of the Government to attend any meetings of the Board and to take part in the discussions of the Board, but such officer or officers shall not have the right to vote.

7. (1) The Board shall meet at such times and places and shall, subject to the provisions of sub sections (2) to (4) observe such rules of procedure in regard to transaction of business at its meetings (including the quorum at meetings) as may be provided by the regulations made by the Board under this Act. Provided that the Board shall meet at least once in every three months. (2) The President may, whenever he thinks fit call special meeting of the Board. (3)` The President or in his absence the Vice-President, or if he is also absent, such member as may be chosen by the members present from among themselves shall preside at a meeting of the Board. (4) All questions at a meeting of the Board shall be decided by a majority of the votes of the members president and voting in the case of an equality of votes, the President or in his absence the person presiding shall have a second or casting vote. (5) The proceedings of the meeting of the Board shall be forwarded to the Government within fifteen days of every meeting.

8. The term of office and the terms and conditions of service of the Vice – President, the Secretary and the other members of the Board shall be such as may be prescribed.

9. (1) The Secretary shall exercise such powers and discharge such duties as may be prescribed or as may, from time to time, be delegated to him by the Government or by the President . (2) Subject to such regulations as may be made by the Board in this behalf the Board may appoint such other officers and servants as it considers necessary for the efficient performance of its functions.

10. The Board may constitute a standing finance committee consisting of the Vice- President and not more than four members. The Vice-President shall be the chairman of the committee. The Committee shall exercise such powers and perform such functions relating to the finance of the Board as may be laid down by regulations made by the Board.

11. (1) Subject to the provisions of this Act, the functions of the Board shall generally be to plan organize and implement programmes for the development of Khadi and Village Industries. (2) In particular and without prejudice to the generality of the foregoing power, the Board may take such steps as it may think fit. (a) to start, encourage, assist and run Khadi and Village Industries; (b) to provide deserving persons with gainful employment in their homes through the organization of Khadi and Village Industries; (c) to grant loans and give other assistance for the development of Khadi and Village Industries; (d) to organize co-operative societies for Khadi and Village Industries; (e) to conduct training centres and train persons at such centers or at other centres outside State of Tamilnadu in Khadi and Village Industries; (f) to arrange for the supply of raw materials, tools and implement to such Industries and for the sale of their finished products; (g) to arrange for the publicity and popularization of the finished products of such Industries by opening stores, shops, emporia, exhibitions and the like; (h) to educate public opinion and cultivate in the public a preference for such Industries and for utilization of their products; (i) to seek and obtain advice and guidance of experts; (j) to encourage and promote research in the technique of production of Khadi or in the development of Village Industries, and (k) to provide facilities for a study of the problems relating to Khadi or Village Industries.

12. The Board shall for the purpose of carrying out its functions under this Act, have the following powers, namely:- (i) to acquire and hold such movable and immovable property as it deems necessary and to lease, sell or otherwise transfer any such property; Provided that any lease, sale or other transfer to any person or authority other than the Khadi and Village Industries Commission of any immovable property belonging to the Board shall be null and void unless it is sanctioned by the Government; (ii) to appoint a Committee or Committees for securing the efficient performance of its functions and in particular for ensuring that such function are performed with the due regard to the requirement of the local area concerned; (iii) to incur expenditure and undertake any work in any area in the State for the framing and execution of such schemes as it may consider necessary for the purpose of the carrying out the provisions of this Act, or as may be entrusted to it by the Government; and (iv) to enter into any contract and to do all things necessary for the purpose of this Act.

13. In the performance of its functions under this Act., the Board shall be bound by such directions as the Government may give to it.

14. The Government may transfer to the Board any building, land or other property, movable or immovable for the use of and management by the Board on such conditions and subject to such limitations as may be imposed by the Government.

15. (1) The Board shall have two separate funds to be called the Khadi Fund and the Village Industries Fund. All grants and advances made to the funds from time to time by the Government for the purpose of the development of Khadi or the development of Village Industries and all other grants, subventions, donations, gifts and loans received from the Central Government or any State Government or the Khadi and Village Industries Commission or any local authority of any body or organization, whether incorporated or not, or any individual for all or Village Industries Fund, as the case may be, and all payments by the Board for, or in receipt of Khadi and Village Industries shall be made from the appropriate fund. (2) Except as otherwise directed by the Government all moneys belonging to such funds shall be deposited in such manner as the government may, by general or special order, direct or be invested in such securities as may be approved by the Government.

16. (1) The Government may, from time to time make subventions and grants to the Board for the purposes of this Act on such terms and conditions as the Government may, in each case, determine. (2) The Government may, from time to time advance loans to the Board on such terms and conditions not inconsistent with the provisions of this Act as the Government may determine.

17. Subject to the provisions of section 18, the Board shall have power to spend such sums as it deems fit on purpose authorized by this Act; Provided that nothing in this section shall be deemed to prevent Board from spending, with the previous approval of the Government, such moneys as it thinks fit on any such purpose outside the State of Tamilnadu.

18. (1) The Board shall, by such date in each year as may be prescribed, prepare and submit to the Government for approval two separate budgets in the prescribed form for the next financial year to be called the Khadi and the Village Industries Budget showing the estimated receipts and expenditure in respect of Khadi and Village Industries respectively during that financial year. (2) Subject to the provisions of sub-sections (3) and (4) no sum shall be expended by or on behalf of the Board unless such expenditure is covered by a specific provision in the budget approved by the Government. (3) The Board may, within the respective limits of the Khadi budget and the Village Industries budget, sanction any re-appropriation from one head of expenditure to another or from a provision made for one scheme to that in respect of another, but in no case shall a re-appropriation of fund be made from the Khadi budget to the Village Industries budget or from the Village Industries, budget to the Khadi budget. Provided that no re-appropriation from the head “Loan” to any other head of expenditure and vice-versa in either Budget shall be sanctioned by the Board expect with the previous approval of the Government and the Khadi and Village Industries Commission. (4) The Board 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 Government under any head of expenditure or in connection with any particular scheme so long as the aggregate amount in either budget approved by the Government is not exceeded.

19. Subject to such rules as may be made in this behalf by the Government, the Board shall have power to borrow on the security of the Khadi Fund or the Village Industries Fund or any other asset for any purpose to which such Fund or asset may be applied.

20. (1) The Board shall be maintain proper accounts and other relevant records and prepare an annual statement of accounts including the profit and loss account and the balance sheets in such form as may be prescribed. (2) The accounts of the Board shall be audited by such persons as the Government may appoint in this behalf. (3) The person appointed under sub-section (2) shall in connection with such audit, have such rights, privileges and authority, as may be prescribed and in particular such auditor shall have the right to demand the production of books accounts, connected vouchers, and other document and to inspect any of the officers of the Board. (4) The accounts of the Board as certified by such auditor together with the audit report there on shall be forwarded annually to the Government and the Khadi and Village Industries Commission before such date as the Government may specify in this behalf. (5) The Board shall comply with such directions as the Government may, after perusal of the report of the auditor think fit to issue.

21. The Board may, with the previous approval of Khadi and Village Industries Commission, make any alteration in any scheme so long as the aggregate amount sanctioned for the scheme is not exceeded.

22. The Board may write off any amount whatsoever due to it, whether under a contract or otherwise or any sum payable in connection therewith, if in its opinion such amount or sum is irrecoverable. Provided that the Board shall, before writing off any such amount or sum exceeding three thousand rupees, obtain the sanction of the Government.

23. If any amount due to the Board in accordance with the terms of a contract or otherwise or any sum payable in connection there with has not been paid in the Board may, without prejudice to any other remedy provided by law,recover such amount or sum as arrears of land revenue.

24 (1) The Board shall furnish to the Government such time and manner as may be prescribed or as the Government may direct, such returns and statement and such particular in regard to any proposed or existing programme for the promotion and development of Khadi and Village Industries as the Government may, from time to time require. (2) Without prejudice to the provisions of sub-sections (1) the Board shall as soon as possible after the end of each financial year, submit to the Government a report in such form and before such date as may be prescribed, giving a true and full amount of its activities, policy and programme during the previous financial year. (3) All returns, statements and particulars furnished by the Board to the Government under sub-section (1) shall, as soon as possible after they are so furnished be place on the table of both the Houses of Legislature.

25 (1) If at any time the Government are satisfied that:- (a) The Board has, without reasonable cause or excuse, made default in the discharge of its duties or in the performance of its functions, imposed or entrusted by or under this Act, or exceeded or abused its power or (b) Circumstances have so arise that the Board is rendered unable or may be rendered unable, to discharge its duties or perform, its functions under this Act, or (c) It is otherwise expedient or necessary to dissolve the Board, the Government may, by notification, dissolve the board for such period as may be specified in the notification and declare that the duties, powers and functions of the Board shall, during the period of its dissolution, be discharged, exercised and performed by such person or authority, as may be specified in the notification. Provided that the Government shall, before dissolving the Board, give a reasonable opportunity to it to show cause against the proposed action. (2) The Government shall, before the expiration of the period of dissolution, reconstitute the board in accordance with the provisions of section 3 (3) The Government may make such incidental and consequential provisions as may; appear to them to be necessary for giving effect to the provisions of this section. (4) Any notification issued or order made by the Government under this section shall not be questioned in any civil court. (5) On the Board being dissolved under sub- section (1) (i) All funds and other properties vested in the Board shall vest in the Government, and (ii) All rights, obligations and liabilities (including any liabilities under any contract ) legally subsisting and enforceable by or against the Board shall become the rights, obligations and liabilities of the Government.

26 (1) In each year on or before such date as may be fixed by the Government in this behalf, the board shall in such form as may be prescribed, prepare and forward to the Government. (a) a programme for the promotion of Khadi and Village Industries and (b) A schedule of the staff of officers and servants employed and to be employed during the next year. (2) The programme shall contain:- (a) Particulars of the scheme which the Board proposes to execute whether in part or in whole during the next year. (b) Particulars of any work which the Board proposes to execute or any undertaking which the Board proposes to organize during the next year for the purposes of performing its functions under this Act, and (c) Such other particulars as may be prescribed. (3) The Government may approve and sanction the programme and the schedule of the staff of officers and servants forwarded to them under sub- section (1) with such modifications as they may deem fit. (4) The Board may submit a supplementary budget and supplementary programme for the sanction of the Government in such form and before such date as the Government may prescribe and the provisions of sections is 18 and sub – sections (1) to (3) shall respectively apply to such supplementary budget and programme.

27. The members, officers and other servants of the Board shall be deemed to the public servants within the meaning of section 21 of the Indian Penal Code (Central Act XLV OF 1860).

28. (1) No suit, prosecution or other legal proceeding shall lie against the president, secretary or members or any person in the employment of the Board for anything which is, in good faith done or intended to be done in pursuance of this Act. (2) Save as otherwise expressly provided in this Act, no suit or other legal proceedings shall lie against the board for any damage caused or likely to be caused by anything which is in good faith done, or purported to be done, under this Act.

29. (1) The 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 place at which the office of the Board shall be located; (b) the term of office of, and the manner of filling causal vacancies among, the members of the Board and the terms and conditions of service of the vice –president, the secretary and the other members of the Board, including the salaries and allowances to be paid to them and travelling and daily allowances to be drawn by them; (c) the disqualification for membership of the board and the procedure to be followed for removing a member who is or becomes subject to any disqualification; (d) the procedure to be followed in the performance of functions by members of the Board; (e) the powers and duties to be exercised and discharged by the Secretary; (f) The date by which and the form in which the budget and the supplementary budget shall be prepared and submitted in each year under section 18 and sub-section (4) of section 26; (g) the procedure to be followed for placing the board in possession of funds; (h) the procedure to be followed and the conditions to be observed in borrowing money and in granting loans; (i) the conditions subject to which and the mode in which contracts may be entered into by or on behalf of the Board; (j) the form and manner in which the accounts of the board shall be maintained under section 20; (k) the form and manner in which the returns, reports or statement shall be maintained under section 24 and (l) any other matter which has to be , or may be, prescribed. (3) All rules made and all notification issued under this Act shall, as soon as possible after they are made or issued, be placed on the table of both the House of the Legislature and shall be subject to such modification by way of amendment or repeal as the Legislature may make either the same session or in the next session;

30. (1) The Board may with the previous sanction of the Government, by notification make regulation not inconsistent with this Act and the rules made there under, for enabling it to perform its functions under this Act. (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 terms and conditions of appointment and servants of the Board other than the secretary including the payment of travelling and daily allowances in respect to journeys undertaken by such officers and servants for the purposes of this Act: (b) the time and place of meetings of the Board, the procedure to be followed in regard to transaction of business at such meetings and quorum necessary for the transaction of such business at a meeting; (c) the delegation of powers and duties to the standing finance committee, secretary or any employee of the Board; (d) the maintenance of minutes of meetings of the Board and the transmission of copies of there to the Government. (e) the persons by whom and the manner in which payments deposits and investments may be made on behalf of the Board. (f) the custody of money required for the current expenditure of the board and investment of money not so required; (h) the maintenance of accounts (3) The Government may, by notification, rescind regulation made under this section and there upon, the regulation shall cease to have effect.

31. The provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being in force relating to Khadi and Village Industries.