Preamble

Preliminary

1. Short title Short title, extent and commencement.—

1. (1) This Act may be called the Goa, Daman and Diu Khadi and Village Industries Board Act, 1965.
2. (2) It extends to the whole of the Union Territory of Goa, Daman and Diu.
3. (3) It shall come into force on such date as Government may, by notification in the Official Gazette appoint in this behalf. 2. Definitions Definitions.— In this Act, unless the context otherwise requires:—
   • (a) “Board” means the Goa, Daman and Diu Khadi and Village Industries Board, established under section 3.
   • (b) “Chairman” means Chairman of the Board.
   • (c) “Government” means the Government of the Union Territory of Goa, Daman and Diu.
   • (d) “Khadi and Village Industries Commission” means the Khadi and Village Industries Commission established under section 4 of the Khadi and Village Industries Commission Act, 1956 (Central Act 61 of 1956).
   • (e) “Khadi” means any cloth woven on handlooms in India from cotton, silk or woollen yarn handspun in India or from a mixture of any two or all of such yarns; and certified as Khadi by the Khadi and Village Industries Commission Act, 1956.
   • (f) “Member” means member of the Board.
   • (g) “Prescribed” means prescribed by rules made under this Act.
   • (h) “Regulations” means regulations made by the Board under this Act.
     • (i) “Vice-Chairman” means Vice-Chairman of the Board.
   • (j) “Village Industries” means:—
     • (i) All or any of the industries specified in the schedule to the Khadi and Village Industries Commission Act, 1956, and includes any other industry deemed to be specified in the said schedule by reason of a notification issued by the Central Government under section 3 of the said Act; and
     • (ii) Any other industry specified in this behalf by Government by notification in the Official Gazette in consultation with the Khadi and Village Industries Commission and the Board.

Establishment, incorporation and constitution of the Khadi and Village Industries Board

3. Term of Office Establishment and incorporation of Board.—

1. (1) With effect from such date as the Government may by notification appoint in this behalf, there shall be established a Board to be called the Goa, Daman and Diu Khadi and Village Industries Board.
2. (2) The Board shall be a body corporate having perpetual succession and a common seal and may sue and be sued in its corporate name and shall be competent to acquire, hold and dispose of property and to contract and do all things necessary for the purpose of this Act. 4. Disqualifications for membership of the Board Disqualifications for membership of the Board.— A person shall be disqualified for being appointed as, and for being, a member of the Board:
   • (a) if he is found to be a lunatic or a person of unsound mind; or
   • (b) if he has been adjudged insolvent; or
   • (c) if he has been convicted of an offence involving moral turpitude; or
   • (d) if he has any financial interest in any subsisting contract with or in any work being done for the Board except as a shareholder (other than a Director of Managing Agent) in a company as defined in section 3 of the Companies Act, 1956, provided that where he is a shareholder, he will disclose to the Government, the nature and extent of shares held by him in such a company; or
   • (e) if he has any financial interest in any business undertaking dealing with khadi or any other village industry specified or deemed to be specified in the Schedule to the Act. 5. Removal from the Board Removal from the Board.— The Government may, by notification in the Official Gazette, remove from office any member of the Board who:—
   • (a) is or becomes subject to any of the disqualifications mentioned in rule 4; or
   • (b) in the opinion of the Government has failed or is unable to carry out his duties, so as to render his removal necessary; or
   • (c) absents himself from three consecutive meetings of the Board without leave of the Board: Provided that before issuing such notification the Government shall give an opportunity to the member concerned to show cause against such removal. 6. Casual Vacancies Casual Vacancies.—
3. (1) When a member dies or resigns or is removed from office, the Government may by notification in the Official Gazette, appoint a person to fill the vacancy.
4. (2) A member appointed to fill a casual vacancy shall hold office so long as the member whose place he fills would have been entitled to hold office if the vacancy had not occurred. 7. Salary or Honorarium and Allowances payable to Members Salary or Honorarium and Allowances payable to Members.—
5. (1) The Chairman, the Vice-Chairman and other members of the Board shall be paid such salary or honorarium and allowances from the funds of the Boards as the Government may from

time to time fix.

1. (2) The Chairman, the Vice-Chairman and other members of the Board shall also be entitled to draw travelling and daily allowances for journeys performed for attending the meetings of the Board or for the purpose of discharging such duties as may be assigned to them by the Board, in accordance with the rules and orders issued by the Government from time to time, at the highest rate admissible to Government servants of Grade I.
2. (3) The Chairman shall be entitled without payment of rent to the use of a furnished residence. The accommodation shall be furnished as prescribed by the Government at a total cost not exceeding Rs. 500/-.
3. (4) Notwithstanding anything contained in sub-rules
4. (1) and
5. (2) the Chairman, the Vice-Chairman or any other member of the Board, who is also a member of Parliament or of the Legislature of a State or Union Territory, shall not be entitled to any remuneration other than compensatory allowance as defined in clause
   • (a) of section 2 of the Parliament (Prevention of Disqualification) Act, 1959, or, as the case may be, other than the allowances, if any, which a member of the Legislature of the State or Union Territory may, under any law for the time being in force in the State or Union Territory relating to the prevention of disqualification for membership of the State Legislature or Union Territory Legislature, receive without incurring such disqualification. 8. Chief Executive Officer Chief Executive Officer.— The Board shall appoint a Chief Executive Officer and shall prescribe his functions, duties and powers from time to time. He will be entitled to attend all the meetings of the Board, and the Standing Finance Committees but will not be entitled to vote. 9. Office of the Board Meetings of the Board.—
6. (1) The Board shall meet at such times and places and shall, subject to the provisions of sub-section
7. (2) to
8. (4) observe such rules of procedure in regard to transaction of business at its meeting (including the quorum at meetings) as may be provided by regulations made by the Board under this Act.

Provided that the Board

shall meet at least once in every two months.

1. (2) The Chairman may, whenever he thinks fit, call special meetings of the Board.
2. (3) The Chairman or in his absence the Vice-Chairman 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.
3. (4) 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 an equality of votes, the Chairman or in his absence the person presiding, shall have a second or casting vote.
4. (5) The proceedings of the meeting of the Board shall be forwarded to Government and the Khadi and Village Industries Commission within fifteen days of every meeting. 10. Constitution of Standing Finance Committees Constitution of Standing Finance Committees.—
5. (1) The Board shall constitute, by a resolution, the following Standing Finance Committees:
   • (i) Standing Finance Committee (Khadi).
   • (ii) Standing Finance Committee (Village Industries).
6. (2) Each Committee shall consist of not less than three members appointed from amongst the members of the Board.
7. (3) The Chairman or in his absence the Vice-Chairman if appointed as a member of a Committee, shall be the Chairman of the Committee. In the absence of both the Chairman and the Vice-Chairman, the Committee shall elect a Chairman from amongst its members.
8. (4) Each Committee shall appoint one of the Officers of the Board (other than the Chief Executive Officer) to perform the duties of its Secretary. 11. Powers of the Chairman Powers and Duties of the Secretary.— 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 Government or by the Chairman. 12. Duties and functions of Vice-Chairman Officers and servants of Board and conditions of their services.— (1)
   • (a) The Board shall appoint an Executive Officer to manage the affairs of the Board.
   • (b) The functions, duties and powers of the Executive Officer shall be such as may be fixed by the Board, with the prior approval of Government.
   • (c) The Executive Officer may be a Government servant whose services are placed at the disposal of the Board by Government and if he is a Government servant his remuneration, allowances and other conditions of service shall be such as may be fixed by Government.
9. (2) The Board may appoint such other officers and servants as it may consider necessary for the efficient discharge of its functions: Provided that the Board may delegate its powers in this behalf to the Chairman or other members or officers of the Board.
10. (3) Subject to the provisions of clause
    • (c) of sub-section (1), the remuneration, allowances and other conditions of service of the officers and servants of the Board shall be such as may be determined by regulations. 13. Powers of the Secretary of the Board Standing Finance Committee.— The Board may constitute from among the members of the Board a Standing Finance Committee to exercise such powers and perform such functions relating to finances of the Board as may be laid down by Regulations made by the Board. 14. Powers of the Financial Adviser Appointment of other Committees.— Subject to any rules made in this behalf, the Board may from time to time, appoint one or more Committees for the purposes of securing the efficient discharge of its functions and in particular for the purposes of securing that the functions are discharged with due regard to the circumstances and requirements of Khadi or any particular Village Industry. Such Committees may be appointed for any particular areas.

Functions and Powers of the Board

15. Preparation and submission of annual estimates Functions of Board.—

1. (1) It shall be the duty of the Board to encourage, organise, develop and regulate Khadi and Village Industries and perform such functions as Government may prescribe, from time to time.
2. (2) Without prejudice to the generality of the provisions of sub-section
3. (1) the Board shall also in particular discharge and perform all or any of the following duties and functions, namely:—
   • (a) to start, encourage, assist and carry on Khadi and Village Industries and to carry on trade or business in such industries and in the matters incidental to such trade or business;
   • (b) to help the people by providing them with work in their homes and to give loans and other form of monetary help to individuals or societies or institutions on such terms as may be prescribed;
   • (c) to encourage establishment of Co-operative Societies for Khadi and Village Industries;
   • (d) to conduct training centres and to train people thereat with a view to equipping them with the necessary knowledge for starting or carrying on Khadi and Village industries; (e)
     • (i) to manufacture tools and implements required for carrying on Khadi and Village Industries and to manufacture the products of such industries,
     • (ii) to arrange for the supply of raw materials and tools and implements required for the said purposes, and
     • (iii) to sell and to arrange for the sale of the products of the said industries;
   • (f) to arrange for publicity and popularising of finished products of Khadi and Village Industries by opening stores, shops, emporiums or exhibitions and to take similar measures for the purpose;
   • (g) to endeavour to educate public opinion and to impress upon the public the advantages of patronising the products of Khadi and Village Industries;
   • (h) to seek and obtain advice and guidance of experts in Khadi and Village Industries;
     • (i) to discharge such other duties and to perform such other functions as Government may direct for the purpose of carrying out the objects of this Act. 16. Supplementary Estimates Supplementary Estimates.— If during any financial year, for any reason substantial modification of the budget estimates as finally approved by Government is likely to be involved, the Board shall submit for approval to the Government supplementary estimates in such form and on such dates as the Government by order from time to time direct. 17. Accounts of the Board Powers to make contracts.—
4. (1) The Board may enter into and perform all such contracts as it may consider necessary or expedient for carrying out any of the purposes of this Act.
5. (2) Every contract shall be made on behalf of the Board by its Chairman: Provided that the Chairman may, by an order in writing, delegate his powers in this behalf to the Vice-Chairman or Secretary.
6. (3) Every contract made on behalf of the Board shall, subject to the provisions of this section, be entered into in such manner and form as may be prescribed.
7. (4) A contract not executed in the manner provided in this section and the rules made thereunder, shall not be binding on the Board. 18. Preparation of Accounts and their production before Audit Power of the Khadi & Village Industries Commission to give directions.— In the performance of its functions under this Act, the Board shall be bound by such directions as the Khadi and Village Industries Commission may give to it from time to time.

Preparation and submission of Programme

19. Impropriety and Irregularity in Accounts Impropriety and Irregularity in Accounts.—

1. (1) The Audit Officer shall furnish the Board and the Government with a statement each, where necessary, in regard to any material impropriety or irregularity which the Audit Officer may observe in the expenditure or in the recovery of moneys due to, or in the accounts of the Board.
2. (2) The Board shall forthwith remedy any defect or irregularity that may be pointed out by the Audit Officer and shall report to the Government the action taken by it thereon within ninety days of the receipt of the report of the Audit Officer provided that if there is any difference of opinion between the Board and the Audit Officer or if the Board does not remedy any defect or irregularity the Government may and on reference specifically made therefor by the Audit Officer shall, in consultation with the Comptroller and Auditor-General may pass orders thereon as it thinks fit and the Board shall thereafter take action in accordance therewith within such time as may be specified by the Government. 20. Publication of annual Accounts Publication of annual Accounts.— An abstract statement of annual receipts and expenditure shall be published in the Gazette of the Government of Goa, Daman and Diu. 21. Placing the Board in possession of funds Placing the Board in possession of funds.—
3. (1) After the budget relating to the Board has been approved by the Government, and after due appropriation has been made by the Legislature in this behalf, the Government will place the Board in possession of funds for “Khadi” and “Village Industries” separately.
4. (2) The funds for “Khadi” will be provided from the “funds” for the development of “Handloom and Khadi Industries” formed under the provisions of the Khadi and other Handloom Industries Development (Additional Excise duty on Cloth) Act, 1953, and the rules framed thereunder or by grant-in-aid or subsidies.
5. (3) The funds for “Village Industries” will be provided by grants-in-aid or subsidies. 22. Contract Contract.—
6. (1) The Board may, in connection with its trading and other activities, enter into contracts provided provision therefor exists in the sanctioned budget.
7. (2) The Board may delegate to the Chairman, the Secretary, any member of the Board or any Officer of the Board such powers of entering into contracts on its behalf as it may think fit.
8. (3) Contracts made on behalf of the Board shall not be binding on the Board unless they are executed by a person authorised under sub-rule
9. (2) to enter into them and the seal of the Board is affixed thereto.
10. (4) Any person authorised under sub-rule
11. (3) to enter into contracts on behalf of the Board shall not be liable for any assurance or contract made on its behalf; and any liabilities arising out of such assurance or contract shall be discharged from the moneys at the disposal of the Board.

Finance, Accounts, Audit and Reports

23. Power to sanction grants and subsidies Power to sanction grants and subsidies.—

1. (1) The Board shall disburse grants and subsidies in accordance with and at rates and on terms sanctioned by the Government in respect of each industry, from time to time. The Government may, on its own motion or on the recommendation of the Board, modify or supersede the financial rates and terms previously sanctioned.
2. (2) The Board may reduce the rates at which grant and subsidies are payable in individual cases to such extent, as it thinks necessary, but shall not enhance such rates except with the prior approval of the Government.
3. (3) Grants and subsidies shall be paid only to:
   • (a) a society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in the Union Territory of Goa, Daman and Diu;
   • (b) a Co-operative Society registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in the Union Territory of Goa, Daman and Diu;
   • (c) a gram or village panchayat, a municipality, or any similar body established under any law for the time being in force;
   • (d) an authority set up under any law for the time being in force relating to bheedan or gramdan;
   • (e) a trust created for public purposes of a charitable or religious nature;
   • (f) an individual or institution engaged in research in Khadi and Village Industries, subject to the condition that a grant or subsidy to an individual should not exceed Rs. 1,000 in any one case and to an institution, it should not exceed Rs. 10,000 in any one case. The ceiling of Rs. 1,000 for an individual and of Rs. 10,000 for an institution may, however, be exceeded with prior approval of Government.
   • (g) any other individual, authority or body in accordance with the approved pattern and within the ceilings communicated by the Board to Government. Note:— “Individual” means an artisan or any other worker undertaking activities falling under the purview of the Board and for which grants and subsidies are given. 24. Power to grant loans Power to grant loans.—
4. (1) The Board shall grant loans in accordance with the provisions of the loan rules for Khadi and Village Industries made by the Government from time to time, and in accordance with and as rates and on terms sanctioned by the Government in respect of each industry from time to time.
5. (2) The Board shall not be competent to modify, amend or otherwise vary the provisions of the loan rules.
6. (3) The Government may, on its own initiative or on the recommendation of the Board, modify or amend the loan rules. The modification or amendment will have effect from the date it is made by the Government. 25. Power to Borrow Application of fund and property.— All property, fund and other assets of the Board shall be held and applied by it subject to the provisions and for the purposes of this Act. 26. Action against persons responsible for losses Action against persons responsible for losses.— The Board shall take suitable action against the persons responsible for the loss and shall also send to the Government a detailed report together with the action taken against the persons, if any, responsible for the loss. The cases involving losses not exceeding Rs. 500 shall not be reported to the Government unless there are in any case important features which merit detailed investigation and consideration. Exception.— Nothing contained in this rule shall apply to losses occasioned by irrecoverable loans. Sanction of the Government shall be obtained before such losses are written off.
   • (a) Chairman ... Upto Rs. 1,000
   • (b) Chief Executive Officer ... Upto Rs. 500
   • (c) Any other officer authorised by the Board ... Upto Rs. 250 27. Custody of Common Seal Custody of Common Seal.— The common seal of the Board shall remain in the custody of the Chief Executive Officer of the Board. 28. Reports Reports.— The annual report to be submitted by the Board to the Government under section 29 of the Act regarding its activities during the previous financial year shall be submitted before 31st December every year and it shall contain particulars amongst others in respect of the following items and shall be in such form as the Government may from time to time direct, namely:
     • (i) budget provision and expenditure;
     • (ii) production and sale of khadi both traditional and ambar;
     • (iii) production of sale of products of the village industries;
     • (iv) production of charkhas and other implements;
     • (v) employment statistics for each industry; and
     • (vi) training of personnel. 29. Monthly Returns Annual Report.—
7. (1) The Board shall prepare and forward to Government in such manner as may be prescribed an annual report within three months from the end of the financial year giving a complete account of its activities during the previous financial year alongwith a copy of the annual statement of accounts referred to in section 31.
8. (2) The Board shall prepare and forward to the Commission an annual report within three months from the end of the financial year giving a complete account of the funds received by the Board from the Commission and the activities carried on by the Board from and out of such fund during the previous financial year.
9. (3) The report received by Government under sub-section
10. (1) shall be laid before the Goa, Daman and Diu Legislative Assembly as soon as may be after it is received by Government. 30. Power to obtain supplementary report or information Returns and Reports.—
11. (1) The Board shall furnish to Government and the Khadi and Village Industries Commission at such time and in such form and manner as may be prescribed or as Government or the Khadi and Village Industries Commission 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 Government “or the Khadi and Village Industries Commission” may, from time to time require.
12. (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 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.
13. (3) All returns, statements and particulars furnished by the Board to Government under sub-section
14. (1) shall, as soon as possible after they are so furnished be placed on the table of the House of the Legislature.