The Assam Khadi and Village Industries Boards Act, 1955
## ssam act xvi of 1955

THE ASSAM KHADI AND VILLAGE INDUSTRIES BOARD ACT,

1955

(Passed by the Assembly)

**(Received the assent of the Governor of Assam on the**

**23rd July 1955)**

[Published in the Assam Gazette, dated the 27th July 1955]

**An**

**Act**

**to provide for the organising, developing and regulating village industries**

**in the State of Assam and to constitute a Board to carry out the**

**said object**

Whereas it is necessary to organise, develop and regulate village Indus­

tries in the State of Assam and to constitute a Board to carry out the said
objects ;

It is hereby enacted in the Sixth Year of the Republic of India **as**

follows:—

CHAPTER I

**Preliminary**

1. **Short title, extent and commencement.—(1) This Act may be called**

the Assam Khadi and Village Industries Board Act, 1955.

(2) It extends to the whole of the State of Assam.
(3) It shall come into force on such date as the State Government

may, by notification in the Official Gazette, appoint in this behalf.

2. **Definition.—In this Act, unless there is anything repugnant in the**

subject or context (1) “Board” means the Assam Khadi and Village Indus­
tries Board, constituted under section 3

(2) “Prescribed” means prescribed by rules made under this Act.
(3) “Khadi and Village Industries” riieans the industries specified in

the Schedule.

CHAPTER II

**Establishment and Constitution of the Board**

3. **Incorporation of Board.—(1) With effect from such date as the**

State Government may, by notification in the Official Gazette, appoint in this
behalf there shall be established for the purposes of this Act, a Board
by the name of Assam Khadi and Village Industries Board.

(2) The Board shall be a body corporate having perpetual succes­

sion 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.

4. **Constitution of Board.—(1) The Board shall consist of such num­**

ber of members as the State Government may appoint. One of such mem­
bers shall be appointed by the State Government as the Chairman and
another as Secretary. The Chairman, the Secretary and other members of
the Board shall hold office for such period as the State Government may,
by general or special order direct.

_[Price annas 2 or 2 d.]_


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(2) The Chairman, the Secretary or any other member of the Board

may at any time resign his office by submitting his resignation in writing
to the State Government. Provided that resignation shall not take effect

until it is accepted.

(3) The Chairman, the Secretary or any other member of the Board,

shall receive such allowances if any as may be prescribed.

(4) The allowances to the members shall be paid from the Fund of

the Board.

5. **Vacancy of member.—If the Chairman or the Secretary** **or** any

other member tenders his resignation the State Government may fill up
the consequent vacancy by fresh appointment.

6. **Proceedings presumed to** be **valid and good.—No act or proceedings**

of the Board shall be invalidated merely by reason of any vacancy in its
membership on account of resignation, death or removal.

7. **Appointment of members of staff of Board and conditions of their**

**service.—(1) The Board may appoint such members of the staff as** **it may**
consider necessary.

(2) The remuneration, allowances and other conditions of service

of the members of the staff of the Board shall be such as may be determined
by the Board.

8. **Appointment of Committees.—Subject to any rules made** under

section 29, the Board mav from time to time appoint one or more com­
mittees for the purpose of securing efficient discharge of its functions and
in particular for the purpose of securing that the said functions are exer­
cised with due regard to the circumstances and requirements of Khadi or
any particular village industry. Such Committees may be appointed for

any particular area.

9. **Meetings of Board.—The Board shall meet and shall from** time

to time make arrangements with respect to the date, time, notice, manage­
ment and adjournment of its meetings as it thinks fit. Such meeting shall
be held at least once in every three months.

10. **Power to make contracts.—(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.

(2) Every contract shall be made on behalf of the Board, by the

Chairman.

(3) Every contract made by the Chairman on behalf of the Board

shall, subject to the provisions of this section, be entered into in such man­
ner and form as may be prescribed.

(4) A contract not executed in the manner provided in this section

and the rules made thereunder shall not be binding on the Board.

CHAPTER III

**Functions and Powers of the Board**

11. **Functions of the Board.—(1) It shall be the duty of the Board to**

organise, develop and regulate Khadi and Village Industries and perform
such functions as may be prescribed from time to time.

(2) Without prejudice to the generality of the provisions of sub­

section (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 Indus­

tries and to carry on trade or business in such industries and to deal with
matters incidental to such trade or business.


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(b) to help the people by providing them with work in their **homes**

and to give them monetary help.

(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 carry­
ing on Khadi and Village Industries.

(e) (i) to manufacture tools and implements required for carrying **o»**

Khadi and Village Industries.

(ii) to arrange for the supply of raw materials and tools **and im­**

plements required for the Khadi and Village Industries.

(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 store, shops, emporium or exhibi­
tions or other similar measures.

(g) to endeavour to educate public opinion and to impress upon the

public the advantage 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 undertake and encourage research work in connection with

Khadi and Village Industries and to carry on such activities as are inci­
dental and conducive to the objects of this Act.

(j) to discharge such other duties and to perform such other func­

tions as the State Government may direct for the purpose of carrying out
the object of this Act.

12. **General Powers of the Board.—The Board shall for the purposes**

of carrying out its functions under this Act have the following powers:—

(i) to acquire and hold such movable and immovable property as

it deems necessary and to lease, sell or otherwise transfer any
such property.

(ii) to incur expenditure and undertake works in any area in the

State for the framing and execution of such scheme as it may
consider necessary for the purpose of carrying out the provi­
sions of this Act or as may be entrusted to it by the State Gov­
ernment subject to the provisions of this Act and the rules made
thereunder.

CHAPTER IV

**Preparation and submission of programmes**

13. **Preparation and submission of annual programme.—(1)** **In each**

year, on such date as may be fixed by the All-India Khadi and Village
Industries Board, the Board shall prepare and forward to the All-India
Khadi and Village Industries Board, a programme of works as **approved**
by the State Government.

(2) The programme shall contain :—

(a) Such particulars of the Scheme which the Board proposes to

execute whether in part or whole during the next year;

(b) particulars of any worker undertaking which the Board pro­

poses to organise during the next year for the purposes of carrying out its
functions under this Act ; and

(c) Such other particulars as may be prescribed.


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14. **Sanction of programme.—The All-India Khadi and Village Indus­**

tries Board, may approve and sanction the programme in whole or with
such modifications as it deems fit.

**15. Supplementary programme.—The Board may prepare and forward**

**a** supplementary programme as approved by the State Government for the
sanction of the All-India Khadi and Village Industries Board, in such

**form** and before such date as the All-India Khadi and Village Industries
**Board** may prescribe and the provisions of Section 13 shall apply to such
supplementary programme.

CHAPTER V

**Finance, Accounts, Audit and Debts**

16. **Transfer of property.—The State Government may transfer to the**

**Board** buildings, land or any other property whether movable or immovable,
**for use** and management by the Board on such conditions and limitations
**as the** State Government may deem fit for the purposes of this Act.

17. **Expenditure, etc., till the Board is established.—(1) All debts or**

expenditure incurred, all contracts entered into and ail matters and things
engaged to be done by, with or for the Assam Khadi and Village Industries
**Board,** established by Government Notification No.SG. 162/53/19, dated 21st

**July 1953,** before and up-to-date of the establishment of the Board under
this act shall be deemed to have been incurred, entered into, or engaged to
**be done, by,** with or for the Board ; and all suits and legal proceedings
instituted or which may be instituted by or against the Assam Khadi and
Village Industries Board shall be continued or instituted by or against the
**Bpard.**

(2) All assets of the Assam Khadi and Village Industries Board,

referred to in sub-section (1) shall upon the establishment of the Board vest
in the Board for the purposes of this Act.

18. **Funds of Board.—(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 met therefrom.

(2) The Board may accept grants, sub-ventions, donations and gift

and receive loans from Government or All-India Khadi and Village Indus­
tries Board or a local authority or any body or association, whether incor­
porated or not, or an individual for all or any of the purposes of this Act.

(3) All money belonging to the fund of the Board shall be deposited

in such manner as the State Government may by a special or general order,
direct.

(4) The accounts of the Board shall be operated upon by such

officers jointly or individually as may be authorised by the Board.

19. **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.

20. **Budget.—The Board shall, on such date as may be fixed by the**

All-India Khadi and Village Industries Board prepare and submit to the
All-India Khadi and Village Industries Board the budget as approved by
the State Government for the next financial year showing estimated receipts
and expenditure on capital and revenue accounts according to the pro­

gramme and the schedule of the stock.

21. **Sanction of Budget.,—The AU-India Khadi and Village Industries**

**Board,** may sanction the budget submitted to it with such modifications as
**it deems proper.**


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22. **Supplementary Budget.—The** Board may submit a supplemental

budget as approved by the State Government for the sanction of the Al
India Khadi and Village Industries Board, in such form and before sue
date as the All-India Khadi and Village Industries Board may prescribe
and the provisions of Section 21 shall apply to such supplementary budge

23. **Annual report.—The Board shall prepare and forward to the** **Al**

India Khadi and Village Industries Board and State Government in sue
manner as may be prescribed an annual report within three months from th
end of a financial year. Every such report shall be laid before the Stat
Legislature as soon as may be after it is received by the State Government

24. **Further report, statistics and returns.—The Board, shall, befor**

such date and at such intervals and in such manner as the All-India Khad
and Village Industries Board, may from time to time direct submit to thi
All-India Khadi and Village Industries Board, a report on such matters an<
such statistics and also such returns as the All-India Khadi and Villag<
Industries Board, mav direct.

25. **Accounts and audits.—Accounts of the Board shall be** main

tained and an annual statement of accounts shall be prepared in sucl

manner as may be prescribed. Such accounts shall be audited by ar

auditor approved by the State Government.

CHAPTER VI

**Miscellaneous**

26. **Direction by State Government.—(1) In the discharge of its func**

tions, the Board shall be guided by such instructions on questions of policy
as may be given to it by the State Government.

(2) If any dispute arises between the State Government and the

Board as to whether a question is or is not a question of policy the decisior
of the State Government shall be final.

27. **Members of Board and Members of Staff of Board, to be publi<**

**servants.—Members of the Board and members of the Staff of the Boarc**

.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 ol

Section 21 of the Indian Penal Code.

28. **Protection of action taken under this Act.—No suit, prosecutior.**

or other legal proceeding shall lie against any person for anything which is
in good faith done or purported to be done under this Act.

29. **Rules.—The Assam Khadi and Village Industries Board may, bj**

notification in the official Gazette, make rules subject to approval of the
State Government for carrying out the purposes of this Act.

30. **Regulations.—(1) The Board may, make regulation for its internal**

administration consistent with this Act and the rules made thereunder and
notify them in the official Gazette.

(2) In particular and without prejudice to the generality of the fore­

going power, the Board may make regulations providing fo r:—

(a) the procedure and disposal of its business.
(b) remuneration, allowances and other conditions of service ol

members of the staff of the Board.

(c) functions and duties of the members of the staff of the Board.
(d) functions of the committees and the procedure to be followed

by such committees in the discharge of their functions.


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**6**

, 3.1. **Saving.—Nothing in .this Act shall be deemed to apply to** any-jq. S

industry declared to be a scheduled industry under the Industries (Deve­
lopment and Regulation) Act, 1951, or to effect any of the provisions of the
said Act.

SCHEDULE

**Name of Industries**

1. Khadi.

2. Village Oil Industries,
3. Soap making with non-edible oil.
**4.** Paddy husking.
5. Palm Gur Industry.
6. Gur and Khandeshri.

7. Leather Industry.

8. Woolen Blankets.
9. High grade Handmade paper.

**10.** Bee-Keeping.
**11.** Cottage Match Industry.

**A, G. P. (Leg.) N o.50/55-1050—5-12-1955.**


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