Backward Classes Development Corporation Act, Gujarat Year 1985

1. (1) This Act may be called the Gujarat Backward Classes Development Corporation Act, 1985.
2. (2) It extends to the whole of the State of Gujarat.
3. (3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

In this Act, unless the context otherwise requires,-

1. (a) "agriculture" includes dairy farming, poultry farming, breeding of livestock, pisciculture, sericulture and forestry; and the term "agricultural" shall be construed accordingly;
2. (b) "socially and educationally backward class citizen" means a citizen belonging to any socially and educationally backward class specified in the Schedule;
3. (c) "backward class organization" means a firm registered under the Indian Partnership Act, 1932 or a society wherein all or a majority of partners or, as the case may be, all or a majority of members of such society, are socially and educationally backward class citizens. Explanation- Where a society (hereinafter referred to as "the principal society" has as its member another society (hereinafter referred to as "the member society") and all or a majority of members of such society are socially and educationally backward class citizens such member society shall be deemed to be a member of the principal society belonging to socially and educationally backward class citizens;
4. (d) "Chairman" means the Chairman of the Corporation;
5. (e) "Citizen" means citizen of India;
6. (f) "Corporation" means the Gujarat Backward Classes Development Corporation established under section 4;
7. (g) "director" means a director of the Corporation and includes the Chairman under sub-section

1. (3) of section 6;
   • (h) "managing director" means a director appointed as managing director under sub-section
2. (3) of section 6;
   • (i) "marketing" means all activities relating to the transport, grading, pooling, marketing and sale of agricultural or industrial produce, whether in the primary form or in semi-processed or processed form;
   • (j) "prescribed" means prescribed by rules made under this Act;
   • (k) "processing" means all activities relating to the processing of agricultural produce or industrial product so as to make it marketable or fit for consumption and it includes purchase and storage of raw material, purchase of equipment, and purchase, installation and running of machinery required for processing and storage of finished produce;
   • (l) "regulation" means a regulation made under section 28;
   • (m) "small scale industry" means a cottage industry or an industry in which capital investment does not exceed such amount as may be prescribed;
   • (n) "society" means a society registered under the Societies Registration Act, 1860 or a co-operative society registered or deemed to be registered under the Gujarat Co-operative Societies Act, 1961;
   • (o) "supply and storage" means supply and storage of agricultural inputs and establishment, maintenance and running of storages, cold storages and warehouses;
   • (p) "Vice-Chairman" means the Vice-Chairman of the Corporation.

1. (1) The State Government may, by notification in the Official Gazette, add to the Schedule any class which in its opinion is a socially and educationally backward class and thereupon the class so added shall be deemed to be socially and educationally backward class specified in the Schedule for the purposes of this Act.
2. (2) Every notification issued under sub-section
3. (1) shall be laid for not less than thirty days before the State Legislature as soon as possible after it is issued and shall be subject to rescission by the State Legislature or to such modification as the State Legislature may make, during the session in which it is so laid or the session immediately following. Any rescission or modification so made by the State Legislature shall be published in the Official Gazette and shall thereupon take effect.

1. (1) For the purpose of securing the uplift of backward class citizens in the State of Gujarat the State Government may, by notification in the Official Gazette, establish a Corporation by the name of the Gujarat Backward Classes Development Corporation with effect from such date as may be specified in the notification.
2. (2) The Corporation shall be a body corporate with perpetual succession and common seal and may be sue and be sued in its corporate name, and shall be competent to acquire, hold and dispose of property, both movable and immovable, and to contract and do all things necessary for the purposes of this Act.

The headquarters of the Corporation shall be at Gandhinagar or at such other place as the State Government may, by notification in the Official Gazette, specify.

1. (1) The Corporation shall consist of not more than fifteen directors who shall be nominated by the State Government: Provided that not less than three directors shall be officials and the remaining directors shall be non-officials who shall be nominated from amongst persons who, in the opinion of the State Government, have special knowledge or practical experience in matters relating to agriculture, agro-industries, water development projects, finance, co-operation and socio-economic problems of socially and educationally backward class citizens: Provided further that not less than six directors shall be socially and educationally backward class citizens: Provided also that the State Government shall nominate at least one woman as non-official member.
2. (2) The State Government shall appoint one of the directors as Chairman and one of the directors as Vice-Chairman.
3. (3) The State Government shall appoint one of the official directors to be the managing director of the Corporation.

1. (1) The director shall hold office during the pleasure of the state Government.
2. (2) Subject to the provisions of this Act, the terms and conditions of the appointment of the directors other than the managing director and the fees and allowances payable to them shall be such as may be prescribed.

On the occurrence of any vacancy in the office of a director due to death, resignation or any other reason, the same shall be filled up by the State Government in the manner provided in section-6.

A person shall be disqualified for being nominated as, and for being a director, if he-

1. (a) is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors; or
2. (b) is or unsound mind and stand so declared by a competent court; or
3. (c) is, or has been, convicted of any offence which, in the opinion of the State Government, involves moral turpitude or convicted under Protection of Civil Rights Act, 1955; or
4. (d) is, or has been, removed or dismissed from the service of any State Government or the Central Government or a Corporation owned or controlled by any State Government or the Central Government.

A director who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Corporation shall, as soon as possible, after the relevant circumstance have come to his knowledge, disclose the nature of his interest at such meeting and the disclosure shall be recorded in the minutes of the Corporation and the director shall not take any part in any deliberation or decision of the Corporation with respect to that matter.

1. (1) [The State Government] may, at any time, remove any director from office, if, in its opinion, such a director.
   • (a) is, or has become, subject to any disqualification mentioned in section-9:
   • (b) is absent without leave of the Corporation from more than three consecutive meetings thereof without cause sufficient, in the opinion of the Corporation, to exonerate his absence:
   • (c) has acted in contravention of the provisions of section 10; or
   • (d) has been guilty of misconduct in the discharge of his duties : Provided that no order of removal shall be passed without giving the director a reasonable opportunity of showing cause against the proposed order.
2. (2) A director may resign his office by giving notice thereof in writing to the State Government and on such resignation being accepted he shall be deemed to have vacated his office.

1. (1) The managing director shall be a whole time officer of the Corporation and shall-
   • (a) be the Chief Executive Officer of the Corporation,
   • (b) be responsible for the operational management of the Corporation and implementation of the general policy approved by the Corporation,
   • (c) perform such duties as the Corporation may, by regulations or otherwise, assign to him,
   • (d) receive such salary and allowances and be governed by such terms and conditions of service as may be approved by the State Government in consultation with the Corporation.
2. (2) If the managing director is by infirmity or otherwise rendered incapable of carrying out his duties or is absent on leave or otherwise in circumstances not involving the vacation of his appointment the State Government may appoint another person to act in his place during his absence.

1. (1) The Corporation may appoint such officers and other employees as it considers necessary for the efficient performance of its functions and determine by regulations or otherwise their conditions of appointment and service and the remuneration payable to them.
2. (2) The Corporation may, by general or special order, delegate to the managing director or to any other officer or employee of the Corporation, subject to such conditions and limitations, if any, as may be specified, such of its powers and duties under this Act except the power to make regulations, at it may deem necessary.

1. (1) The Corporation shall meet at the such time and place and shall observe such rules of procedure in regard to the transaction or business at its meetings (including the quorum at such meeting) as may be provided by regulations.
2. (2) The Chairman or, if for any reason he is unable to attend any meeting, the Vice-Chairman or, if for any reason he is also unable to attend any meeting, any other director elected by the directors present at the meeting, shall preside at the meeting of the Corporation.
3. (3) All the questions which come up before any meeting of the Corporation shall be decided by a majority of the votes of directors present and voting, and in the event of an equally of votes, the Chairman or, in his absence, the Vice-Chairman or, in absence of both the Chairman and the Vice-Chairman, the person presiding, shall have and exercise a second or casting vote.

1. (1) No act or proceeding of the Corporation shall be questioned or be invalid on the ground merely of the existence of any vacancy in, or any defect in, the constitution of the Corporation.
2. (2) No act done by any person acting in good faith is a director shall be deemed to be invalid merely on the ground that he was disqualified to be a director or that there was any other defect in his nomination.

No person shall be disqualified for being chosen as, or being, a member of the Legislative Assembly of the State by reason only of the fact that he is a Chairman or a director.

1. (1) Subject to the provisions of this Act, it shall be the primary duty of the Corporation to undertake the task of social and economic uplift of the socially and educationally backward class citizens in the State of Gujarat and the Corporation shall be competent to do all things and to exercise all the powers necessary for the performance of such duties.
2. (2) Without prejudice to the generality of the foregoing provisions, such power of the Corporation shall include the power-
   • (i) to plan and promote, on its own or in collaboration with or through such backward class organization or other agencies as may be approved by the Corporation, any programme of agricultural development, marketing, processing, supply and storage of agricultural produce, small scale industry, building construction, transport and such other activities as may be approved in this behalf by the State Government;
   • (ii) to undertake, on its own or in collaboration with or through such backward class organizations or other agencies as may be approved by the Corporation, any activities in relation to any of the matters specified in clause (i), for furthering the objects of the Corporation;
   • (iii) to give on hire agricultural or industrial machinery or equipments to the members of the backward class organizations;
   • (iv) to give grants and subsidies to, and to guarantee loans taken by, the members of backward class organisations;
   • (v) to encourage employment opportunities for the backward class citizens;
   • (vi) to undertake any other activity which the State Government may entrust to the Corporation;
   • (vii) to grant loans or obtain covered loans to the socially and educationally backward class citizens or backward class organization;
   • (viii) to borrow money subject to such conditions as the State Government may specify;
   • (ix) to issue bonds and debentures;
   • (x) to draw, make, accept, endorse, discount, execute and issue promissory notes, bills of exchange, hundies, bills, warrants, debentures and other negotiable instruments;
   • (xi) to invest or deposit surplus funds of the Corporation in Government securities or in such other manner as the State Government may, by general or special order, direct; and
   • (xii) to discharge such other functions as may be prescribed or as are supplemental, incidental or consequential to any of the functions conferred on it by or under this act.

1. (1) The State Government may provide to the Corporation such sum not exceeding 12[fifty crores of rupees] as the State Government may think fit as capital that may be required by the Corporation for the purpose of carrying out its functions: Provided that where the capital initially provided is less than 12[fifty crores of rupees] the State Government may from time to time increase the capital to sum not exceeding 12[fifty crores of rupees].
2. (2) Such capital may be provided subject to such terms and conditions as may be determined by the State Government.
3. (3) The Capital so provided shall form part of the fund of the Corporation.

1. (1) The Corporation shall have its own fund.
2. (2) The Corporation may accept grants, subventions, donations and gifts from the Central or State Government or a local authority or any individual or body of individuals whether incorporated not, for all or any of the purposes of this Act.
3. (3) All sums which may from time to time be paid to it by the State Government and all other receipts of the Corporation shall be carried to the fund of the Corporation and all payments by the Corporations, shall be made therefrom.
4. (4) The Corporation may spend such sums as it thinks fit for the performance of its functions under this Act, and such sums shall be treated as expenditure payable out of the fund of the Corporation.
5. (5) All moneys belonging to the fund of the Corporation shall be deposited in such bank or invested in Government securities or in such other manner as the State Government may, by general or special order, direct.

1. (1) The balance-sheet and accounts of the Corporation shall be prepared and maintained in such form and manner as may be prescribed.
2. (2) The Corporation shall cause books of accounts of the Corporation to be balanced and closed on the thirty-first day of March, every year.

1. (1) The accounts of the Corporation shall be audited once in every financial years, by auditors duly qualified to act as auditors under sub-section-(1) of section 226 of the Companies Act, 1956, who will be appointed by the Corporation and shall receive the remuneration from the Corporation as the Corporation may fix.
2. (2) The auditors shall be supplied with copy of the annual balance-sheet and the income and expenditure account of the Corporation and it shall be the duty of the auditors to examine them together with the accounts and vouchers relating thereto and they shall have a list delivered to them of all books kept by the Corporation and shall at all reasonable times have access to the books, accounts and other documents of the Corporation and may require from any director or officer of the Corporation such information as they may think necessary for the performance of their duties as auditor.
3. (3) The auditors shall make a report to the Corporation upon the annual balance-sheet and accounts examined by them and in every such report shall state whether, in their opinion, the balance-sheet is a full and fair balance-sheet containing necessary particulars and properly drawn up so as to exhibit a true and fair view of the state of affairs of the Corporation.
4. (4) The Corporation shall furnish to the State Government a copy of its balance-sheet and accounts together with a copy of the report made by auditors under sub-section
5. (3) and a report on the working of the Corporation during the relevant period, within four months from the date on which its accounts are closed and balanced.
6. (5) Copies of the reports referred to in sub-section
7. (4) shall be laid by the State Government, as soon as may be, before the State Legislature.

1. (1) The State Government may from time to time constitute an Advisory Committee consisting of such number of persons as it may think fit and on such terms and conditions as may be prescribed.
2. (2) The Corporation may, if it think fit, consult the Advisory Committee on any business coming before it and shall do so in respect of such business as the State Government may, by general or special order in this behalf specify or when required by the regulations so to do.
3. (3) The Advisory Committee shall meet at such intervals as may be prescribed, and for the transactions of urgent business on such other occasions as the Chairman of the Corporation may require.
4. (4) The number of members necessary to constitute a quorum at the meeting of Advisory Committee shall be such as the State Government when constituting the Committee may specify.

1. (1) Where any amount is due to the Corporation from any person in respect of advances or other financial accommodation granted by it, such amount shall, on a certificate being granted by the managing director in the prescribed form, be recoverable as arrears of land revenue by the Collector of the district in which the person from whom the amount is due resides or carried on business towns any property.
2. (2) Before issuing the certificate referred to in sub-section (1), the managing director shall make an application to such officer, as may be empowered by the State Government in this behalf and that officer shall, after giving an opportunity of being heard to the person concerned and after such further enquiry as he may consider necessary, by an order determine the amount due to the Corporation and communicate the same to the managing director.
3. (3) An appeal against an order passed by the officer empowered under sub-section
4. (2) shall lie within such period and to such authority as may be prescribed.
5. (4) The officer empowered under sub-section
6. (2) and if the appellate authority shall follow such procedure as may be prescribed.
7. (5) The certificate issued by the managing director under sub-section
8. (1) shall be final and conclusive and shall not be called in question before any authority or court.
9. (6) For the purpose of receiving any amount due to the Corporation in respect of a loan it shall not be necessary to proceed against the principal before proceeding against his surety.

1. (1) No provision of law, other than this Act relating to the winding up, dissolution or liquidation of the companies or corporation shall apply to the Corporation.
2. (2) The State Government may, if the Corporation fails to carry out its functions or exceeds its powers, or upon receipt of a report under section-21, call upon the Corporation to show cause why it should not be dissolved and if no explanation is offered within the specified period or if the State Government is not satisfied with the explanation, the State Government may, dissolve the Corporation from such date as may be specified.

1. (1) When the Corporation is dissolved under section 24,-
   • (i) all directors shall, from the date of dissolution, vacate their offices;
   • (ii) all powers and duties of the Corporation shall, during the period of dissolution, be exercise and performed by such person as the State Government may appoint in this behalf;
   • (iii) all funds and other property vested in the Corporation shall, during the period of dissolution, vest in the State Government.
2. (2) The State Government may reconstitute the Corporation after such period as it may think fit.

No suit or other legal proceeding shall lie against the Corporation or any director including the managing director, or any officer or other employee or any other person authorized by the Corporation to discharges any functions under this Act for any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done by him in pursuance of this Act.

1. (1) Every director shall be indemnified against all losses and expense incurred by him in the discharging of his duties except such as are caused by his own willful act or default.
2. (2) A director shall not be responsible for the acts any other director or for the acts of any officer or other employee of the Corporation or for any loss or expenses resulting to the Corporation by the insufficiency or deficiency of value of, or tie, to, any property or security acquired or taken on behalf of the Corporation in good faith, or by the insolvency or wrongful act of any debtor or any person under obligation to the Corporation, or anything done in good faith, in the execution of the duties of his office or in relation thereto.

1. (1) The Corporation may make regulations not inconsistent with the provisions of this Act and rules made thereunder, to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.
2. (2) In particulars 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 time and ace of meeting of the Corporation and the procedure to be followed in relation to such meeting including the quorum necessary fit the transaction of business;
   • (b) the duties which the managing director shall perform;
   • (c) the duties conduct, salary, allowance and conditions of service of officers and other employees of the Corporation;
   • (d) the delegation of powers and functions to the officers and other employees of the Corporation;
   • (e) the establishment and maintenance or provident and other benefit funds for the officers and employees of the Corporation;
   • (f) any other matter which is, or may be, necessary for the efficient conduct of the affairs of the Corporation.

1. (1) The State Government may, by notification published in the Official Gazette, make rules to carry out all or any of the purposes of this Act.
2. (2) In particular and without prejudice to generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
   • (a) the terms and conditions of services of the directors and the fees and allowances payable to them;
   • (b) functions, in addition to those specified in sub-section
3. (2) of section 17, to be discharged by the Corporation and the conditions and restrictions subject to which those functions shall be discharged;
   • (c) the form and manner in which accounts shall be maintained and the balance-sheet and income and expenditure account shall be prepared;
   • (d) the form in which certificate shall be issued by the managing director, the period within which and the authority before whom an appeal shall be filed, and procedure to be followed by the appellate authority under section 23;
   • (e) any other matter which is required to be or may be prescribed.
4. (3) All rules made under this section shall be laid for not less than thirty day before the State Legislature as soon as may be after they are made and shall be subject to rescission by the State Legislature or to such modifications as the State Legislature may make during the session in which they are so laid or the session immediately following.
5. (4) Any rescission or modification so made by the State Legislature shall be published in the Official Gazette and shall thereupon take effect.