The Bihar Khadi and Village Industries Act, 1956

(1) This Act may be called the Bihar Khadi and Village Industries Act, 1956. (2) It extends to the whole of the State of Bihar. (3) It shall come into force in the whole of the State of Bihar on such date as the State Government may, by notification in the Official Gazette, appoint.

In this Act, unless there is anything repugnant in the subject or context,— (a) "Board" means the Bihar Khadi and Village Industries Board established under section 3; (b) "Khadi" means any cloth woven on hand-looms in India from cotton, silk or woollen yarn hand-spun in India or from a mixture of any two or all of such yarns; (c) "member" means a member of the Board and includes the President; (d) "prescribed" means prescribed by rules made under this Act; (e) "regulations" means regulations made by the Board under this Act; (f) "rules" means rules made by the State Government under this Act; (g) "State Government" means the Government of Bihar; (h) "Village Industries" means all or any of the industries specified in the Schedule and includes any other industry deemed to be a village industry under section 31;

(1) With effect from such date as the State Government may, by notification in the Official Gazette, fix in this behalf, there shall be established a Board to be called the Bihar Khadi and Village Industries Board. (2) The Board 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.

(1) The Board shall consist of such number of members, not exceeding fifteen, as the State Government may prescribe, to be appointed by the State Government. (2) The members shall hold office for such term as may be prescribed. (3) The members may be appointed from amongst persons who, in the opinion of the State Government, have shown an interest in, or have experience of, the development of khadi and village industries.

The President or any member may resign his office by giving notice in writing to the State Government and on such resignation being accepted by the State Government, he shall be deemed to have vacated his office.

A person shall be disqualified for being appointed as, or for continuing as, a member of the Board, if he— (a) holds any office of profit under the Board; (b) is of unsound mind and stands so declared by a competent court; (c) is an undischarged insolvent; (d) has been convicted of an offence involving moral turpitude.

The State Government may remove from the Board any member who, in its opinion— (a) refuses to act; or (b) has become incapable of acting; or (c) has so abused his position as a member as to render his continuance on the Board detrimental to the interest of the public; or (d) is otherwise unsuitable to continue as a member.

Any vacancy caused by the resignation or removal of any member or otherwise shall be filled by fresh appointment by the State Government and the person so appointed shall hold office for the unexpired portion of the term of his predecessor.

No act or proceeding of the Board shall be deemed to be invalid by reason only of the existence of any vacancy in the Board or any defect in the appointment of any member thereof.

(1) The Board may appoint such members of staff as may be necessary for the efficient performance of its functions. (2) The conditions of appointment and service and the scales of pay of the officers and servants of the Board shall be such as may be provided for in the regulations.

The State Government may constitute an Advisory Council consisting of such number of persons as it may think fit to advise the Board in the discharge of its functions.

The Board shall meet at such times and places and shall observe such procedure in regard to the transaction of business at its meetings as may be provided for in the regulations.

If at any time the State Government is satisfied that the Board has failed to perform its duties or has abused its powers, or that it is no longer necessary or desirable for the Board to continue, it may, by notification in the Official Gazette, dissolve the Board with effect from such date as it may specify. (1) Subject to the provisions of this Act, the functions of the Board shall be to plan, organise and implement programmes for the development of Khadi and Village Industries. (2) In particular and without prejudice to the generality of the foregoing provisions, the Board may take such steps as it thinks fit, (a) to plan and organise the training of persons engaged in Khadi and Village Industries; (b) to build up reserves of raw materials and implements for supply to producers; (c) to provide for the marketing of finished products of Khadi and Village Industries; (d) to promote and encourage co-operative efforts among persons engaged in Khadi and Village Industries; (e) to conduct research and publish literature relating to Khadi and Village Industries; (f) to encourage and guide village industries and Khadi manufacturers; (g) to provide necessary facilities for training and production; (h) to advise the State Government on matters relating to the development of Khadi and Village Industries.

Upon the dissolution of the Board under section 13— (a) all members shall vacate their offices; (b) all powers and duties of the Board shall vest in the State Government; (c) all property and assets of the Board shall vest in the State Government; and (d) all liabilities of the Board shall be transferred to the State Government. The Board shall have power to acquire, hold and dispose of property, both movable and immovable, and to contract and to do all things necessary for the purposes of this Act.

(1) Subject to the provisions of this Act, the functions of the Board shall 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— (i) start, encourage, assist and carry on khadi and village industries; (ii) provide training to those engaged in these industries; (iii) provide raw materials, tools and implements to them; (iv) promote the sale and marketing of the products of these industries. Subject to such rules as may be made in this behalf, the Board may, from time to time, with the previous sanction of the State Government and subject to the provisions of this Act, borrow any sum required for the purposes of this Act.

The Board shall prepare and submit to the State Government for its approval such programmes for the development of khadi and village industries as it may think fit. The Board may, by resolution, delegate to any member or officer of the Board such powers and duties as it may deem necessary.

The State Government may either approve the programme as submitted or make such modifications therein as it may deem fit. The Board shall, by such date as may be prescribed, prepare and submit to the State Government for approval a budget in the prescribed form for each financial year showing the estimated receipts and expenditure.

The Board may submit a supplementary budget for the approval of the State Government in such form and by such date as may be prescribed.

The State Government may transfer to the Board such buildings, lands, or other property, movable or immovable, for the use of the Board on such terms and conditions as it may deem fit. The Board shall prepare and submit to the State Government an annual report of its activities during the previous financial year in such form and by such date as may be prescribed.

All expenditure incurred by the State Government for or in connection with the matters related to the Board before its establishment shall be deemed to be expenditure of the Board. (1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the profit and loss account and the balance sheet in such form as may be prescribed. (2) The accounts of the Board shall be audited annually by such auditor as the State Government may appoint in this behalf. (3) The annual accounts of the Board together with the audit report thereon shall be forwarded to the State Government and shall be laid before the State Legislature.

(1) The Board shall have a fund to be called the 'Board Fund' to which shall be credited all moneys received by or on behalf of the Board. (2) All moneys in the Board Fund shall be kept in such bank or invested in such manner as may be approved by the State Government.

All property, fund and other assets of the Board shall be held and applied by it for the purposes of this Act.

The State Government may, after due appropriation made by the State Legislature by law in this behalf, pay to the Board by way of subvention or loan such sums of money as the State Government may think fit.

The Board shall prepare in such form and at such time each year as may be prescribed a budget for the next financial year.

The Board shall submit the budget to the State Government for approval.

The Board may submit a supplementary budget for approval of the State Government.

The Board shall as soon as may be after the end of each financial year prepare and submit to the State Government an annual report of its activities.

The Board shall furnish to the State Government such returns, statistics and other information as the State Government may from time to time require.

(1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts. (2) The accounts of the Board shall be audited annually by such auditor as the State Government may appoint.

The State Government may give the Board such directions as it may think fit.

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, to be public servants within the meaning of section 21 of the Indian Penal Code.

No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under this Act or any rule or regulation made thereunder.

Any sum payable to the Board shall be recoverable as an arrear of land revenue under the provisions of the Bihar and Orissa Public Demands Recovery Act, 1914 or as a public demand.

The State Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.

The Board may make regulations not inconsistent with this Act and the rules made thereunder for enabling it to perform its functions.

Nothing in this Act shall be deemed to affect the provisions of any other law for the time being in force regarding the development of khadi and village industries.