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THE DAMODAR VALLEY CORPORATION ACT, 1948

Title : THE DAMODAR VALLEY CORPORATION ACT, 1948

Year : 1948



(1) In discharge of its functions the Corporation shall be guided by such instructions on questions of policy as may be given to it by the Central Government.

(2) If any dispute arises between the Central Government and the Corporation as to whether a question is or is not a question of policy, the decision of the Central Government shall be final.



(1) Save as otherwise expressly provided in this Act, any dispute between the Corporation and any participating Government regarding any matter covered by this Act or touching or arising out of it shall be referred to an arbitrator who shall be appointed by the Chief Justice of India.

(2) The decision of the arbitrator shall be final and binding on the parties.



Any land required by the Corporation for carrying out its functions under this Act shall be deemed to be needed to be needed for a public purpose and such land shall be acquired for the Corporation as if the provisions of Part VII of the Land Acquisition Act, 1894 (1 of 1894), were applicable to it and the Corporation were a company within the meaning of clause (e) of section 3 of the said Act.



(1) The Central Government may remove from the Corporation any member who in its opinion--

(a) Refuses to act,

(b) Has become incapable of acting,

(c) Has so abused his position as a member as to render his continuance on the Corporation detrimental to the interest of the public, or

(d) Is otherwise unsuitable to continue as member.

(2) The Central Government may suspend any member pending an enquiry against him.

(3) No order of removal under this section shall be made unless the member concerned has been given an opportunity to submit his explanation to the Central Government, and when such order is passed the seat of the member removed shall be declared vacant and another member may be appointed under section 4 to fill up the vacancy.

(4) A member who has been removed shall not be eligible for reappointment as member or in any other capacity to the Corporation.

(5) The Central Government may declare void any transaction in connection with which a member has been removed under sub- section(1).

(6) If the Corporation fails to carry out its functions, or follow the directions issued by the Central Government under this Act, the Central Government shall have the power to remove the Chairman and the members of the Corporation and appoint a Chairman and members in their places.



All acts prohibited in respect of a reserved forest under section 26 of the Indian Forest Act, 1927 (16 of 1927.) shall be deemed to be prohibited in respect of any forest owned by or under the supervision or control of the Corporation and all offences in respect of such forest shall be punishable under the said Act as if they were committed in respect of a reserved forest.



Whoever contravenes the provisions of sections 17.and 18 of this Act or any rule made there under shall be punished with imprisonment for a term which may extend to six months or with fine or with both.



No Court shall take cognisance of an offence under this Act except on the complaint of an officer of the Corporation authorized by it in this behalf.



Any officer or servant of the Corporation generally or specially authorized by the Corporation may at all reasonable times enter upon any land or premises and there do such things as may be reasonably necessary for the purpose of lawfully carrying out any of its works or of making any survey, examination or investigation preliminary or incidental to the exercise of powers or the performance of functions by the Corporation under this Act.



All members, officers and servants of the Corporation, whether appointed by the Central Government or the Corporation, shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act to be public servants within the meaning of section 21 of the Indian Penal Code. (45 of 1860.)



(1) No suit, prosecution, or legal proceeding shall lie against any person in the employment of the Corporation for anything which is in good faith done or purported to be done under this Act.

(2) Save as otherwise provided in the Act no suit or other legal proceeding shall lie against the Corporation for any damage caused or likely to be caused by anything in good faith done or purported to be done under this Act.



The provisions of this Act or any rule made there under shall have effect notwithstanding anything contained in any enactment other than this Act or any instrument having effect by virtue of any enactment other than this Act.



The Central Government may, by notification in the official Gazette, make rules to provide for all or any of the following matters, namely:-

(1) The salaries and allowances and conditions of service of members, the secretary and the financial adviser;

(2) The functions and duties of the financial adviser;

(3) The dams or other works or the installations which may be constructed without the approval of the Corporation;

(4) The forms of the budget, the annual report and the annual financial statements and the dates by which copies of the annual financial statements shall be made available to the participating Governments;

(5) The manner in which the accounts of the Corporation shall be maintained and audited;

(6) The appointment of an Advisory Committee; and

(7) The punishment for breach of any rule made under this Act.



(1) The Corporation may, with the previous sanction of the Central Government, by notification in the Gazette of India, make regulations for carrying out its functions under this Act.

(2) In particular and without prejudice to the generality of the fore going power, in such regulation the Corporation may make provision for-

(a) Making of appointments and promotions of its officers and servants;

(b) Specifying other conditions of service of its officers and servants;

(c) Specifying the manner in which water rates and charges for electrical energy shall be recovered;

(d) Preventing the pollution of water under its control;

(e) Regulating the taking out of fish from the water under its control;

(f) Regulating its proceedings and business;

(g) Prescribing punishment for breach of any regulation.

(3) All regulations made under sub-sections (1) and (2) shall, as soon as possible, be published also in the Official Gazettes of the State Governments.

Last updated on September, 2016

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