Chapter II ESTABLISHMENT OF THE BOARD.

(1) With effect from such date as the State Government may, by notifi-cation in the official Gazette appoint in this behalf there shall be establish for the rural areas of the State a Board by the name of the Gujarat Rural Housing Board. (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 and hold property both movable and immovable and to contract and do all things necessary for the purposes of this Act. (3) For the purposes of this Act and the land acquisition law the Board shall be deemed to be a local authority. Explanation.—The purposes of this Act referred to in sub-section (3) include the management and use of lands and buildings belonging to or vesting in the Board under or for the purposes of this Act and the exercise of its rights over and with respect to such lands and buildings for the purposes of this Act.

The Rent Act— (a) notwithstanding anything contained therein shall not apply— (i) to any land or building belonging to or vesting in the Board under or for the purposes of this Act; (ii) as against the Board to any tenancies or other like relationship created by the Board in respect of such land or building; (b) shall apply to any land or building let to the Board.

(1) The Board shall consist of the Chairman and ten other members appointed by the State Government : Provided that out of such ten other members, five members shall be persons belonging to Scheduled Castes, Scheduled Tribes or socially, economically and educationally backward classes, two members shall be persons who possess technical knowledge and experience in the matter of construction of buildings, one member shall be an officer of the Government and one member shall be the Rural Housing Commissioner. (2) Any member of the Board may at any time resign his office by submitting his resignation to the State Government : Provided that the resignation shall not take effect until it is accepted.

The State Government may from time to time grant to the Chairman such leave as may be admissible under the rules and any person whom the State Government appoints to act as the Chairman during such absence on leave shall while so acting, be deemed for all purposes of this Act to be the Chairman.

(1) A person shall be disqualified for being appointed or continuing as the Chairman or member of the Board, if he- (a) holds any office or place of profit under the Board ; (b) is of unsound mind, (c) is an uncertificated bankrupt or an undischarged insolvent, (d) has directly or indirectly by himself or by any partner, any share or interest in any contract or employment with, by or on behalf of the Board, or (e) is a director, secretary, manager or other salaried officer of any incorporated company which has any share or interest in any contract or employment with, by or on behalf of the Board. (1A) For the purpose of clause (a) of sub-section (1), a person shall not be deemed to hold office or place of profit under the Board by reason only that he is a Housing Commissioner. (2) A person shall not, however, be disqualified under clause (d) or (e) of sub-section (1) or be deemed to have any share or interest in any contract of employment within the meaning of these clauses, by reason only of his or the incorporated company of which he is a director, secretary, manager or other salaried officer having a share or interest in any news-paper in which any advertisement relating to the affairs of the Board is inserted. (3) A person shall not also be disqualified under clause (d) or (e) of subsection (1) or be deemed to have any share or interest in any incorporated company which has any share or interest in any contract or employment with, by or on behalf of the Board by reason only of his being a shareholder of such company: Provided that such person discloses to the State Government the nature and extent of the shares held by him.

(1) The Chairman and the members shall hold office during the pleasure of the State Government. (2) Every member shall receive such allowances as may be prescribed. (3) The Chairman may hold office in an honorary capacity or on payment of remuneration. If any remuneration is to be paid to the Chairman, such remuneration and other conditions of service shall be such as may be prescribed. (4) The allowances to the members and the remuneration if any, to the Chairman shall be paid from the fund of the Board.

If a member has been guilty of misconduct in the discharge of his duties or of any disgraceful conduct or abuses his position or makes persistent default in the performance of his duties and functions under this Act or has become incapable of performing his duties under this Act, the State Government may remove him from office after giving him an opportunity of being heard.

(1) If a member— (a) becomes subject to any of the disqualifications mentioned in section 7, (b) tenders his resignation in writing to the State Government and such resignation is accepted by the State Government, or (c) is absent without the permission of the Board from all the meetings of the Board for a period of two successive mouths, he shall cease to be a member. (2) In every case where a dispute arises as to whether a member has ceased to be a member or not it shall be decided by the State Government after giving an opportunity of being heard to the member concerned.

Any vacancy of a member, due to death, resignation, removal, disability, or disqualification or any other reason shall be filled in as early as possible : Provided that during any such vacancy the continuing members may act as if no vacancy had occurred.

No disqualification of or defect in the appointment of any person acting as a Chairman or a member of the Board shall be deemed to vitiate any act or proceeding of the Board, if such act or proceeding is otherwise in accordance with the provisions of this Act.

If any member of the Board other than the Chairman is by infirmity or otherwise rendered temporarily incapable of carrying out his duties or is absent on leave or on any other ground not resulting in the cessation of his membership, the State Government may appoint another person to officiate for him and carry out his functions under this Act or any rule or regulation made thereunder.

The Board may appoint a Secretary, one or more Rural Assistant Housing Commissioners and a Rural Housing Commissioner and such other officers and servants as it considers necessary for the efficient performance of its functions: Provided that the appointment of a Rural Housing Commissioner and of any other officer whose salary exceeds Rs. 1,400 per mensem shall be subject to the previous approval of the State Government.

The remuneration and other conditions of service of the Secretary, Rural Housing Commissioner and other officers and servants of the Board shall be such as may be determined by regulations.

(1) The State Government shall establish a provident fund for the Secretary, Rural Housing Commissioner and other officers and servants of the Board, and such provident fund (hereinafter called the said fund) shall, notwithstanding anything contained in section 8 of the Provident Funds Act, 1925, be deemed to be a Government Provident Fund for the purposes of the said Act. (2) The Board shall in respect of each of its employees who is a subscriber to the said fund, pay into the said fund such portion of the contribution in such manner as the State Government may, from time to time, determine. (3) It shall be lawful for the Board to utilize the moneys in the said fund to defray the cost of executing any housing scheme, subject to such restriction as to the amount to be so utilized as the State Government may, from time to time, by order, specify, having regard to the probable requirements, within reasonable proximity of time, of the Board for paying the amount from the said fund to the depositors.

No person who has directly or indirectly by himself or his partner or general agent any share or interest in any contract, by or on behalf of the Board, or the Gujarat Housing Board constituted under section 3 of the Gujarat Housing Board Act, 1961, or in any employment under, by or on behalf of any of the said two Boards otherwise than as an officer or servant thereof, shall become or remain an officer or servant of the Board.

(1) The State Government may appoint a Rural Housing Advisory Committee. The functions of such Rural Housing Advisory Committee shall be advisory and such as may be determined by the State Government. (2) Subject to any rules made under section 68, the Board may from time to time appoint one or more other Committees for the purpose of securing the efficient discharge of its functions.

The Board shall meet and shall from time to time make such arrangements with respect to the day, time, notice, management and adjournment of its meetings as it thinks fit, subject to the following provisions, namely : — (a) the first meeting of the Board shall be called by the Chairman as soon as possible after its constitution under section 5; (b) an ordinary meeting shall be held once at least in every three months; (c) the Chairman may, whenever, he thinks fit, call special meetings; (d) every meeting shall be presided over by the Chairman and in his absence by any member chosen by the meeting to preside for the occasion; (e) all questions at any meeting shall be decided by a majority of the members present and in case of equality of votes, the person presiding shall have and exercise a second or casting vote; and (f) the minutes of the proceedings of each meeting shall be recorded in a book to be provided for the purpose.

(1) The Rural Housing Advisory Committee shall meet to discharge the functions assigned to it in such manner as may be directed by the State Government. (2) Any other Committee appointed under sub-section (2) of section 18 shall meet to discharge the functions assigned to it in such manner as may be directed by the Board.

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.

(1) Every contract shall be made on behalf of the Board by the Chairman : Provided that no contract involving an expenditure of Rs. 25,000 or more shall be made without the previous sanction of the Board. (2) Sub-section (1) shall apply to every variation or abandonment of a contract or estimate as well as to an original contract or estimate.

Subject to any rules which the State Government may make in this behalf, the Board may by order direct that the power conferred on it under section 22 to sanction a contract shall be exercised by the Rural Housing Commissioner or any other officer specified by it in the order.

(1) Every contract by the Chairman on behalf of the Board shall, subject to the provision of this section, be entered into in such manner and form as may be prescribed. (2) A contract not executed as provided in this section and the rules made thereunder shall not be binding on the Board.