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THE KHADI AND VILLAGE INDUSTRIES COMMISSION ACT, 1956

Title : THE KHADI AND VILLAGE INDUSTRIES COMMISSION ACT, 1956

Year : 1956



(1) The Commission shall furnish to the Central Government, at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development of khadi and village industries, as the Central Government may, from time to time, require.

(2) Without prejudice to the provisions of sub-section (1), the Commission shall, as soon as possible after the end of each financial year submit to the Central Government a report, in such form and before such date as may be prescribed, giving a true and full account of its activities, policy and programme during the previous financial year.

(3) A copy of the report received under sub-section (2) shall be laid before each House of Parliament.

24A - 1* [Exemption from liability to pay income-tax

Notwithstanding anything contained in the Income-tax Act, 1961, the Commission shall not be liable to pay any income-tax on its income, profits or gains.]

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1. Inserted by the Finance (No. 2) Act, 1977 (29 of 1977), S. 34 (w.e.f. 1-4-1962).

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(1) The Central Government may, by notification in the Official Gazette, direct that the Commission shall be dissolved from such date as may be specified in the notification and thereupon the Commission shall be deemed to be dissolved accordingly.

(2) On and from the said date-
 
(a) All properties and funds which, immediately before the said date, were in the possession of the Commission for the purposes of this Act shall vest in the Central Government; and

(b) All members shall vacate their office as members of the Commission.

1*[(3) Any time after the issue of the notification under sub-section (1), the Central Government may re-establish the Commission in accordance with the provisions of section 4 and on and from the date of the re-establishment of the Commission, the properties and funds which had previously vested in the Central Government under clause (a) of sub-section (2) shall stand vested in the Commission so re-established."].

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1. Inserted by the Khadi and Village Industries Commission (Amendment) Act, 2006 (10 of 2006).

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(1) The Central 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:-

1*[(a) the manner of filling casual vacancies among the members of the Commission and the terms and conditions of service of the Chairman, the Chief Executive Officer, the Financial Adviser and other members of the Commission including the salary and allowances to be paid to them and the travelling and daily allowances to be drawn by them when they are on tour;]

5*[(aa) The powers to be exercised and functions to be discharged by the Chief Executive Officer under sub-section (1) of section 5;

(ab) The financial matters in respect of which the Financial Adviser shall be in charge under section 5A;

(ac) The transaction of business at the meetings of the Board under subsection (2) of section 10;];

(b) 2[***] the procedure to be followed in removing a member who is or becomes subject to any disqualification;

(c) The term of office and other conditions of service of, the procedure to be followed in the discharge of functions by, and the manner of filling casual vacancies among members of the Board;

3[(cc) ****]

3[(d)****]

4*[(dd) The constitution of Standing Finance Committees under sub-section (1) of section 19 A;

(ddd) The procedure to be followed by the Tribunal in deciding questions referred to it under sub-section (2) of section 19B;]

(e) The date by which, and the form in which, the budget shall be prepared and submitted in each year under sub-section (1) of section 20;

(f) The procedure to be followed for placing the Commission in possession of funds;

(g) The procedure to be followed and the conditions to be observed in borrowing moneys or in granting loans;

(h) The conditions subject to which and the mode in which contracts may be entered into by or on behalf of the Commission;

(i) The form and manner in which the accounts of the Commission shall be maintained under sub-section (I) of section 23;

(j) The form and manner in which the returns, reports or statements shall be submitted under section 23; and

(k) Any other matter which has to be, or may be, prescribed.

3[(3) ****]

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1. Substituted by Khadi and Village Industries Commission (Amdt.) Act (12 of 1987), s. 14 (24-7-87).

2. Words "the disqualifications for membership of the Commission and " omitted, by Khadi and Village Industries Commission (Amdt.) Act (12 of 1987), s. 14 (24-7-87).

3. Cls. (cc) and (d) and sub-sec. (3) omitted, by Khadi and Village Industries Commission (Amdt.) Act (12 of 1987), s. 14 (24-7-87).

4. Inserted, by Act 32 of 1961, S. 13 (28-8-61).

5.Inserted by the Khadi and Village Industries Commission (Amendment) Act, 2006 (10 of 2006).

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(1) The Commission may, with the previous sanction of the Central Government, by notification in the Official Gazette, make regulations not inconsistent with this Act and the rules made there under, for enabling it to discharge 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 service and the scales of pay of officers and servants of the Commission, other than [the Chief Executive Officer] and the Financial Adviser to the Commission, including payment of travelling and daily allowances in respect of journeys undertaken by such officers and servants for the purpose of this Act;

(b) The time and place of meetings of the Commission, the procedure to be followed in regard to transaction of business at such meetings and the quorum necessary for the transaction of such business at a meeting;

4*[(ba) The transaction of business at the meetings of the Zonal Committee under sub-section (2) of section 12A;];

1*[(bb) The summoning and holding of meetings, and the conduct of business of a Standing Finance Committee;]

(c) The delegation of powers and duties to 5 [***] or any employee of the Commission;

(d) The maintenance of minutes of meetings of the Commission and of the Board and the transmission of copies thereof to the Central Government;

(e) The persons by whom, and the manner in which, payments deposits and investments may be made on behalf of the Commission;

(f) The custody of moneys required for the current expenditure of the Commission and investment of moneys not so required;

(g) The maintenance of accounts; and

(h) The form in which certificates of genuineness of khadi and products of village industries may be granted by the Commission1* [and the fees chargeable in respect thereof.]

3*[(2A) The power to make regulations under this section with respect to the terms and conditions of service and the scales of pay and pension to be paid to the employees of the Commission shall include the power to give retrospective effect from a date not earlier than the commencement of this Act, to such regulations or any of them but no retrospective effect shall be given to any such regulation so as to prejudicially affect the interest of any person to whom such regulation may be applicable.]

(3) The Central Government may, by notification in the Official Gazette, rescind any regulation which it has sanctioned and thereupon the regulation shall cease to have effect.

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1. Inserted by Act 32 of 1961, Section 14 (28-8-1961).

2. Substituted for the words "the secretary" by Khadi and Village Industries Commission (Amdt.) Act (12 of 1987), S. 15 (24-7-87).

3. Inserted, by Khadi and Village Industries Commission (Amdt.) Act (12 of 1987), S. 15 (24-7-87).

4. Inserted by the Khadi and Village Industries Commission (Amendment) Act, 2006 (10 of 2006).

5. The words "2 [the Chief Executive Officer]" are omitted by the Khadi and Village Industries Commission (Amendment) Act, 2006 (10 of 2006).

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Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.]

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1. Inserted by Khadi and Village Industries Commission (Amdt.) Act (12 of 1987), S. 16 (24-7-87).

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Schedule I

THE SCHEDULE
1[See section 2 (h)]

1. Bee-keeping.

2. Cottage match industry, manufacture of Fireworks and Aggravates.

3. Cottage pottery industry.

4. Cottage Soap industry.

5. Flaying, curing and tanning of hides and skins and ancillary industries connected with the same and cottage leather industry.

6. Ghani oil industry.

7. Hand-made paper.

8. Manufacture of cane-gur and khandsari.

9. Palm-gur making and other palm-products industry.

2*[10. Processing, packaging and marketing of cereals, pulses, spices, condiments, masalas etc.]

3(i) Manufacture of shellac;

(ii) Collection of forest plants and fruits for medicinal purposes;

(iii) Fruit-processing and fruit preservation;

(iv) Bamboo and cane-work;

(v) Blacksmithy;

(vi) Carpentry; and

(vii) Fibre other than coir.]

4*[Manufacture and use of manure and methane gas from cowdung arid other waste products (such as flesh and dead animals, night soil, etc.)]

5*[Cottasge industry of limestone and its products.]

6*[Manufacture of household utensils of aluminium.]

7*[Manufacture of gum resins; manufacture of katha.]

8*[Lime Stone, Lime Shell and other Lime Products industry.]

9*[Manufacture of Lokvastra cloth.]

10*[Processing of maize and Ragi.]

11Manufacture of Rubber Goods (Dipped Latex Products)]

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1. Substituted for heading by Khadi and Village Industries (Amdt.) Act (12 of 1987), S. 17 (24-7-87).

2. Substituted by G.S.R. 1101, dtd. 16-8-1979.

3. Added by S. O. 3232.

4. Added by S.O.1031.

5. Added by S.O.1342.

6. Added by S.O. 3647.

7. Added by S.O.92.

8. Added by G. S. R. 685(E) of 1977.

9. Added by G. S. R. 6 (E).

10. Added by G. S. R. 366.

11. Added by G.S.R. 591 (E)/84.

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Last updated on August, 2016

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