The Arunachal Pradesh Khadi and Village Industries Board Act, 1989

Short title, extent and commencement.

1. (1) This Act may be called the Arunachal Pradesh Khadi and Village Industries Board Act, 1989.
2. (2) It extends to the whole of the Union territory of Arunachal Pradesh.
3. (3) It shall come into force at once.

Definitions. In this Act, unless the context otherwise requires,—

1. (a) "Board" means the Arunachal Pradesh Khadi and Village Industries Board constituted under section 3;
2. (b) "Khadi" means any cloth woven on handlooms in India from cotton, silk or woollen yarn hand-spun in India or from a mixture of any two or all of such yarns;
3. (c) "member" means a member of the Board;
4. (d) "prescribed" means prescribed by rules made under this Act;
5. (e) "regulations" means regulations made under this Act;
6. (f) "village industry" means any industry located in a rural area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed fifty thousand rupees or such other sum as may, by notification in the Official Gazette, be specified from time to time by the Central Government: Provided that any industry specified in the Schedule may also be notified as a village industry as if it were in a rural area and may also be so notified notwithstanding any change in the location of such industry provided it had been engaged in village industry at any time before such change.

Establishment and constitution of the Board.

1. (1) With effect from such date as the Government may, by notification in the official Gazette, appoint in this behalf, there shall be established for the purposes of this Act a Board to be called the "Arunachal Pradesh Khadi and Village Industries Board".
2. (2) The Board shall be a body corporate with perpetual succession and a common seal and shall have power to acquire, hold and dispose of property and to contract and may, by the said name, sue and be sued.
3. (3) The Board shall consist of a Chairman and such other number of members, not exceeding nine, as the Government may appoint in this behalf: Provided that one of the members shall be the Secretary to the Government in the Department of Industries or his nominee.
4. (4) The Government may appoint a Chief Executive Officer who shall also be an ex-officio member of the Board.
5. (5) The Government may appoint a person to be the Financial Adviser to the Board.

Term of office and conditions of service of members of the Board.

1. (1) The Chairman and other non-official members of the Board shall hold office for a period of three years from the date of their appointment, unless their term of office is determined earlier by the Government.
2. (2) The non-official members of the Board shall be paid such fees and allowances for attending the meetings of the Board as may be prescribed.
3. (3) The members of the Board may resign their office by giving notice in writing to the Government and on such resignation being accepted, such members shall be deemed to have vacated their office.
4. (4) Any casual vacancy in the office of a member shall be filled in by the Government and the member so appointed shall hold office for the unexpired portion of the term of the member in whose place he is appointed.
5. (5) The Board shall meet at such time and place and shall observe such procedure in regard to the transaction of business at its meetings as may be provided for by regulations made under this Act.

Vacancy not to invalidate proceedings. — No act or proceeding 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.

Constitution of the Executive Committee. —

1. (1) The Board shall constitute an Executive Committee consisting of the following members, namely: —
   • (a) the Chairman of the Board;
   • (b) the Vice-Chairman of the Board;
   • (c) the Chief Executive Officer of the Board;
   • (d) the Financial Adviser of the Board; and
   • (e) three other members to be nominated by the State Government from amongst the members of the Board.
2. (2) Subject to the general control and superintendence of the Board, the Executive Committee shall be competent to exercise such powers and perform such duties as may be prescribed.

Meetings of the Board

1. (1) The Board shall meet and shall from time to time make such arrangements with respect to the day, time, place, notice, management and adjournment of its meetings as it thinks fit, subject to the following provisions, namely:
   • (a) an ordinary meeting shall be held once at least in every three months;
   • (b) the Chairman may, whenever he thinks fit, call a special meeting;
   • (c) the quorum for a meeting of the Board shall be four members.
2. (2) The Chairman or, in his absence, any member chosen by the members present from among themselves, shall preside at a meeting of the Board.
3. (3) All questions at a meeting of the Board shall be decided by the majority of the votes of the members present and voting and, in the case of equality of votes, the Chairman or, in his absence, the member presiding, shall have a second or casting vote.
4. (4) The minutes of the proceedings of each meeting shall be recorded in a book to be provided for the purpose, and the minutes shall be signed by the person presiding at the meeting or at the next ensuing meeting.

Appointment of Secretary and Chief Accounts Officer

1. (1) The State Government may appoint one Secretary and one Chief Accounts Officer to the Board to exercise such powers and perform such duties under the Chairman as may be prescribed.
2. (2) The Secretary and the Chief Accounts Officer shall be entitled to receive from the funds of the Board such salary and allowances and shall be governed by such conditions of service as may be determined by the State Government.

Other staff of the Board.—

1. (1) The Board may appoint such other officers and employees as it considers necessary for the efficient performance of its functions: Provided that the Board shall not dispose of or create any post without the previous sanction of the Government.
2. (2) The conditions of appointment and service and the scales of pay of the officers and employees appointed under sub-section
3. (1) shall be such as may be determined by regulations.

Functions of the Board.—

1. (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. (2) In particular and without prejudice to the generality of the foregoing provisions, the Board may take such measures as it thinks fit—
   • (a) to promote, encourage or develop Khadi and Village Industries;
   • (b) to plan and organise training programmes for persons engaged in Khadi and Village Industries;
   • (c) to undertake, assist or encourage the production of Khadi or the manufacture of village industry products;
   • (d) to promote and encourage cooperative efforts among persons engaged in Khadi and Village Industries;
   • (e) to encourage research in the technique of production of Khadi or in the development of village industries or to provide facilities for a study of the problems relating to Khadi and Village Industries;
   • (f) to provide raw materials and implements for Khadi and Village Industries and to make arrangements for providing facilities for the marketing of the products of such industries;
   • (g) to encourage and promote publicity and popularisation of finished products of Khadi and Village Industries;
   • (h) to obtain and maintain statistics relating to Khadi and Village Industries;
     • (i) to carry out any other matter which may be prescribed.

General powers of the Board.

1. (1) The Board shall have power to plan, promote, organise and assist in the establishment and development of Khadi and Village Industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.
2. (2) In particular and without prejudice to the generality of the foregoing powers, the Board may take such steps as it thinks fit—
   • (a) to train those engaged in Khadi and Village Industries and carry out research in the methods and techniques of the Khadi and Village Industries;
   • (b) to provide facilities for the study of the problems of Khadi and Village Industries;
   • (c) to provide for the encouragement of cooperative efforts among persons engaged in Khadi and Village Industries;
   • (d) to encourage and promote the establishment of direct marketing centres for the sale of Khadi and Village products;
   • (e) to carry out any other activity which may be incidental or conducive to the objects of this Act.

Khadi and Village Industries Fund.

1. (1) The Board shall have its own fund, and all receipts of the Board shall be credited thereto and all payments by the Board shall be made therefrom.
2. (2) The Board may accept grants, subventions, donations and gifts and receive loans from the Government or a local authority or any body or association of persons, whether incorporated or not, or any other source, for all or any of the purposes of this Act.
3. (3) All moneys belonging to the fund shall be deposited in such banks or invested in such manner as may, subject to the approval of the Government, be decided by the Board.
4. (4) The fund shall be applied towards meeting the expenses of the Board in the discharge of its functions under this Act and for any other purpose for which under this Act any money is or may be required to be paid by the Board.

Preparation and submission of programmes and budget to the State Government.

1. (1) In such form as may be prescribed, the Board shall prepare and submit to the State Government, for each financial year, a programme of work and a budget, not later than such date as may be fixed in this behalf, showing the estimated receipts and expenditure that are proposed to be incurred during the financial year and the State Government shall sanction the budget with such modification as it deems fit.
2. (2) The Board may submit to the State Government a supplementary programme and budget for the remaining part of any financial year, not later than such date as may be fixed in this behalf.

Borrowing of money.

1. (1) The Board may, with the previous sanction of the State Government and subject to the provisions of this Act and to such conditions as the State Government may specify, borrow any sum required for the purpose of this Act.
2. (2) The State Government may guarantee the repayment of any loan taken by the Board under sub-section
3. (1) as to the payment of interest and other incidental charges.

Transfer of assets and liabilities of the defunct khadi and village industries board.—

1. (1) All assets and liabilities, including the staff, office furniture, records, funds, etc. of the defunct Khadi and Village Industries Board shall stand transferred and vest in the Board constituted under this Act with effect from the date of its constitution.
2. (2) The staff so transferred shall be governed by the service conditions to be framed by the Board with the prior approval of the Government.

Accounts and audit.—

1. (1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the profit and loss accounts and balance sheet in such form as may be prescribed by the Government in consultation with the Accountant General, Arunachal Pradesh.
2. (2) The accounts of the Board shall be audited annually by the Accountant General, Arunachal Pradesh or by such other auditors as may be appointed by the Government in consultation with him.
3. (3) The auditor or auditors appointed under sub-section
4. (2) shall have the same rights and privileges and authority in connection with such audit as the Accountant General has in connection with the audit of Government accounts and in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Board.
5. (4) The accounts of the Board as certified by the Accountant General or any other person appointed in his behalf together with the audit report thereon shall be forwarded annually to the Government, and the Government shall cause the same to be laid before the Legislative Assembly.

Returns and reports.

1. (1) The Board shall furnish to the Government at such time and in such form and in such manner as may be prescribed or as the Government may direct, such returns and statements and such particulars in regard to the discharge of its functions as the Government may, from time to time, require.
2. (2) Without prejudice to the provisions of sub-section (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 account of its activities, policy and programme during the previous financial year.
3. (3) All returns, statements and reports furnished by the Board under this section shall, as soon as possible after they are submitted, be laid before the Legislative Assembly of the State.

Members, officers and servants of the Board to be public servants. All members, officers and servants of the Board shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act or of any rule or regulation made thereunder, to be public servants within the meaning of section 21 of the Indian Penal Code, 1860.

Protection of action taken in good faith. - No suit, prosecution or other legal proceedings shall lie against the Board or any member or officer or servant of the Board for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or regulation made thereunder.

Power to make rules. -

1. (1) The State Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act.
2. (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 terms and conditions of appointment and the term of office of the members of the Board and the procedure to be followed in the discharge of their functions;
   • (b) the control and restriction in relation to the constitution and appointment of standing committees and the delegation of powers and functions to the Board;
   • (c) the remuneration, allowances and other conditions of service of the members, officers and servants of the Board;
   • (d) the manner in which the fund of the Board shall be maintained and audited;
   • (e) the form in which the budget and the annual report shall be prepared and the dates on which they shall be submitted to the State Government;
   • (f) the procedure to be followed in connection with the issue of licences and permits;
   • (g) any other matter which has to be or may be prescribed.
3. (3) Every rule made under this section shall be laid, as soon as may be after it is made, before the Legislative Assembly of Arunachal Pradesh while it is in session for a total period of fourteen 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 the Legislative Assembly agrees in making any modification in the rule or the Legislative Assembly agrees that the rule should not be made, the rule 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.

Power to make regulations

1. (1) The Board may, with the previous sanction of the Government, make regulations not inconsistent with this Act and the rules made thereunder for enabling it to discharge its functions under this Act.
2. (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 Board, including the payment of gratuities and other benefits to them;
   • (b) the time and place of meetings of the Board, the procedure to be followed in regard to the transaction of business at such meetings and the quorum necessary for the transaction of such business at a meeting;
   • (c) the delegation of powers and duties to the Secretary or any other officer or employee of the Board;
   • (d) the maintenance of minutes of meetings of the Board and the transmission of copies thereof 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;
   • (g) the maintenance of accounts; and
   • (h) all other matters which have to be, or may be, prescribed by regulations.
3. (3) The Government may, by notification, rescind any regulation which it has sanctioned and thereupon the regulation shall cease to have effect.

Removal of difficulties If any difficulty arises in giving effect to the provisions of this Act, the Government may, by order, do anything not inconsistent with the provisions of this Act which appears to it to be necessary or expedient for the purposes of removing the difficulty.