Registered No.    WB/SC-132                              No. 42C(Suppl.)

The Calcutta Gazette

Extraordinary      Published by Authority
SRAVANA   11    MONDAY, JULY 23,  1979    [ SAKA 1901

SUPPLEMENT—Official Papers



In exercise of the power conferred by section 33 of the West Bengal khadi and Village Industries Board Act. 1959 (West Ben. Act XIV of 1959), the West Bengal Khadi and Village Industries Board hereby makes, with the previous sanction of the State Government, the following regulations :






1. Short title, application and commencement :

(a)   These regulations may be called the  West Bengal   Khadi   and   Village   Industries   Board   Employees (Discipline and Appeal) Regulations,  1979.
(b)   They shall apply to all the employees of the West Bengal Khadi and Village   Industries Board   including Sectary, casual  and  daily-rated  workers
       but shall not  apply to the employees on deputation  from  the Central Government or State Government or from  any other organization.
(c)   They shall come into force with direct from the date of their publication in the Official Gazette.

2. Definition:    In    these    regulations,     unless   the   context    otherwise requires,—
(a)    "the Act" means the West Bengal Khadi and Village Industries Board Act, 1959 (West Ben. Act XIV of 1959);
(b)    "Board" means the West Bengal Khadi and Village Industries Board established under section 3 ;
(c)    "Chairman" means the Chairman of the Board appointed under section 4;
(d)    "employee" means an employee of the Board ;
(e)    "Schedule" means the Schedule appended to these regulations;
(f)    "section" means a  section of the  Act ;
(g)    "State Government" means the Government of West Bengal.



3. Penalties:  The following penalties may be imposed on an employee who is found to be guilty of any misconduct, breach of conduct and discipline, neglect of duly or negligence :
(a)   censure,
(b)   withholding of increments or promotions,
(c)   recovery from pay of the whole or part of any pecuniary loss caused
       to the Board by negligence or breach of orders,
(d)   reduction to a  lower service or time-seal  of pay  or to a lower stage
       in a lime-scale of pay,
(e)   compulsory retirement,
(f)    removal from service which shall not be a disqualification for future employment under the Board,
(g)   dismissal  from  service which  shall  ordinarily  be a disqualification  for future employment under the Board.

4. Disciplinary Authority: No penalty specified in regulation 3 shall be imposed on any employee by an authority lower in rank than the appointing authority mentioned in the      Schedule.

5. Appellate Authority:  The Board shall be the appellate authority in respect, of Class I and Class II employees and the Chairman shall be the appellate authority in respect        of  Class III and Class IV employees and such authorities shall have thee power to impose any of the penalties specified in regulation 3 on any employee in modification or      enhancement of any penalty imposed by the disciplinary authority after giving the employee a notice or an opportunity of being heard.

6. Appointing Authority: (a) In the case of Class I and Class II employees, the Chairman shall be the appointing authority and the disciplinary authority.
(b). In the case of Class III and Class IV employees, the Executive Officer of the Board shall be the appointing authority and the disciplinary authority.

7. Authority   which  Can   suspend   pending   proceedings:  An employee against whom disciplinary proceeding has been drawn up or is under contemplation may      be placed under suspension by his appointing authority. An employee may also be placed under suspension in case of arrest, detention or for any other good  and              sufficient   reason. During   the  period  of   suspension  such  employee will receive a monthly subsistence allowance of  50 per cent, of his  basic pay which may be          increased to such percentage as may be decided by the Board, if the period of suspension is continued beyond one year. He will also receive full allowances throughout      the   period of suspension.

8. Procedure for imposing penalties :

(1) (a) No order imposing any of the  penalties specified  in regulation  3  shall be  made except after an  inquiry held in the manner provided in this regulation.
(b) Any penalty once imposed should be recorded in the Confidential Annual Report and or Service Records of the employee in whatever form they are maintained.

(2)    The disciplinary authority shall draw up or cause to be drawn up (i) the substance of the imputations of   misconduct  or  misbehavior   into definite and  distinct articles of charge ; (ii) a statement of the  imputations   of   misconduct   or   misbehavior   in support of each article of charge which shall contain (a) a statement of relevant facts including any admission or confession made by the employee, (b) a list of documents by which, and a list of witnesses by whom, the articles of charge arc  proposed to be sustained.

(3)    The disciplinary authority shall deliver or cause to be delivered to the employee a copy of the articles of charge and the statement of imputations of misconduct  or   misbehavior  prepared   under  clause  (ii)  of  sub-regulation   (2) and shall  require the   employee  to   submit  to  the   inquiring   authority   within such  time as may he specified a  written statement of his defense and to state whether he desires to be heard in person.

(4)    The disciplinary authority  shall  in  all cases  for the purpose of  inquiry

appoint an inquiring authority and forward to it  
(a)    a copy of the  articles of  charge  and  the statement of imputations of misconduct or misbehavior ;
(b)    a copy of the statement of witnesses, if  any ,
(c) evidence proving the delivery of the documents referred to in sub-regulation (2) to the employee.

(5)    the employee  shall  appear in  person before  the  inquiring authority on such date and at such time within a period of ten working days from the date of receipt by him of a copy of  the   articles  of   charge   and   the   statements   of imputations of  misconduct  or misbehavior as the inquiring authority may, by a notice in writing, specify in this   behalf   or   within   such further period,   not exceeding ten days, as the inquiring authority may allow.

(6)    If  the employee, who has not admitted any  of  the articles of charge in his  written  statement  of  defense,   appear  before  the   inquiring  authority,  such authority shall ask him whether he is guilty or has  any defense to make, and if he pleads guilty in respect of any of the articles of charge, the inquiring authority shall record the plea, sign the record and obtain the signature of the employee thereon and shall return a finding of such guilt.    The inquiring authority shall, if the employee fails to appear within the specified period or refuses or omits to plead or claims to be tried, require the disciplinary authority or his representative    to produce the evidence by which he    proposes to prove the articles of charge and  shall  adjourn  the case  to a  later date  not exceeding thirty days, after recording an order that  the employee may, for  the purpose of preparing
his defense,

(a)    inspect  within  five  days  of   the  order  or  within  such  further  period, not exceeding five days,  as the inquiring authority  may allow,  the documents specified in the  list referred to in sub-regulation (2) ; 
(b)    submit a list of witnesses to  be examined on his behalf ;
(c) give a notice within a period of ten days of the order or within such future period, not exceeding ten days, as the inquiring authority may allow asking for the discovery or production of any documents which are in the possession of the Board but not mentioned in the list referred to in sub-regulation (2).

(7)    The inquiring authority shall, on receipt of the notice for the discovery or production of documents, forward the same or copies thereof to the authority in whose custody or possession the documents are kept, with a requisition for the    production of the documents by such date as may be    specified in such requisition: Provided that the inquiring authority may, for the reasons to be recorded by it in writing, refuse to requisition such of the documents as are, in its opinion, not relevant to the case.

(8)    On receipt  of  the  requisition  referred  to  in  sub-regulation (7),  every authority having the custody or possession of the requisitioned documents shall produce the same before the inquiring authority : Provided that if the authority having the custody or possession of the requisitioned documents is satisfied for the reasons to be recorded by it in writing that the production of all or any of such documents would be against the public interest or security of the State, it shall inform the inquiring authority accordingly and the inquiring authority shall, on being SO informed, communicate the information to the employee and withdraw the requisition made by it for the production or discovery of such documents.

(9)    Alter the completion of the inquiry, the inquiring authority shall submit to the disciplinary authority  a  report  containing the  following particulars :
(a)    the articles of charge and  the statement of imputations of misconduct or misbehavior ;
(b)    the defense of the employee in respect of each article of charge ;
(c) an assessment of the evidence in respect of each article of charge ;
(d) the finding on each article of charge and the reasons therefore.

(10)    The   disciplinary   authority   shall   consider   the   report   and   record   its findings on each charge.

9. Special procedure in certain cases:


(1) Nothing in  regulation  8  shall apply to a case where-.

(i) an employee is dismissed or removed or reduced in rank on the ground of conduct which has led to his conviction on a criminal charge ; or 
(ii) the authority empowered  to dismiss or  remove   an   employee   or   to          reduce him  in rank  is satisfied   that  for  reasons to  be   recorded   in writing, it is not reasonably practicable lo hold such inquiry .

(2) If any question arises whether it is reasonably practicable to give any   employee an opportunity of showing cause under clause (ii) of sub-regulation (I), the decision therefore of the authority empowered to dismiss or remove such employee or to reduce him in rank shall be final.

10. Procedure of arrest : An employee, who is arrested for debt or on a criminal charge shall be deemed to be placed under suspension from the date  of arrest and shall be allowed during the period of such suspension such pay¬ment as is admissible to an employee under suspension under regulation.

11. Procedure on conviction:    An employee who is committed to prison for debt or is convicted of a criminal offence shall be liable to be dismissed from the date of the judgment order in this behalf without drawal of any proceedings. The order of dismissal shall be cancelled and the employee shall be instated in service if the employee is acquitted by a higher court.

12. Conduct rule :    In the absence of any rules in this regard, the provisions of the West Bengal  Government  Servants Conduct Rules,   1959,  shall apply mutatis mutandis to the employees.

13. Classification of grades:    In the absence of any rules in this regard, the rules regulating the gradation or classification, of the West Bengal Government servants shall apply mutatis mutandis in determining whether an employee is included in Class I or Class II or Class III or Class IV for the purpose of departmental proceedings.

14. Action after inquiry :    Departmental inquiry  once started should be completed.    If the proceedings are withdrawn at any stage, the employee shall be paid full pay and allowances for the   period of   suspension   which shall be treated as a period spent on duty.    If he is not acquitted, he shall be given such pay and allowances as the disciplinary or appellate authority may determine, and the   period  of   suspension shall be   treated as   duty or  leave as may be directed by the disciplinary or appellate authority.

15. Appeals :    An employee may appeal against an order imposing upon him any of the penalties specified in regulation (3) to the authority specified in this behalf in the Schedule.    An appeal against any disciplinary order shall be submitted in writing before the appellate authority within a period of one month from the date on which the appellant receives the copy of the order. The   appellate   authority   may   entertain   the   appeal after the expiry of the aforesaid period if it is satisfied that the appellant had sufficient cause for not submitting the appeal within the specified period.    The authority making the order  appealed  against  shall  implement  the orders of  the appellate  authority and, in doing so, shall furnish to the employee concerned a copy of the order passed by the appellate authority.

(Vide regulations 4 and 13)
Description    Appointing     Authority    empowered    to    Appellate of post.    authority     imposed  penalty and the    Authority penalties    which   it   may impose with  reference to regulation 3  of Chapter II


Authority               Penalty
1 2    3    4    5
(A) Class I and Class  II employees    Chairman    Chairman                 All                    Board
(B)Class III and Class IV                   Executive    Executive                   All                   Chairman
employee                   Officer    Officer

West Bengal Khadi and Village Industries Board.






NOTIFICATION                Dated the   18th September   1961.


In exercise of the power conferred by section 33 of the West Bengal Khadi and Village Industries Board Act, 1959 (West Bengal Act XIV of   1959), the West Bengal Khadi   and Village   Industries Board, with the previous   sanction of   the State Government, hereby makes the following regulations, namely: —





1. Short Title: These regulations may be called the West Bengal Khadi and Village Industries Board Regulations, 1961.
2. Definitions: In these   regulations, unless the context otherwise required —

(a) "The Act" means   the West Bengal Khadi and Village Industries Board Act, 1959 (West Bengal Act XIV of 1959);
(b) "The Board" means the West Bengal Khadi and Village Industries Board established under section 3;
(c) "Chairman” means the Chairman of the Board appointed under sub-section (2) of section 4;
(d) "Executive Officer” means   the   Executive Officer of   the   Board   appointed under section 5;
(e) "Financial year" means the year commencing on the first day of April;
(f) "Government” means   the   Government of West Bengal;
(g) "The rules" means the West Bengal Khadi   and Village Industries Board Rules, 1960; 
(h) "Section" means a section of the Act; and 
(i) "Secretary" means   the Secretary of the Board appointed under   sub-section (3) of, section 4.


Terms and conditions of service under the Board

3. Transfer of   services: The services of all   the  employees of  the  Advisory Board for Khadi  and Village Industries  in West Bengal   and  the services of  the employees attached to  the different Village Industries Schemes under  the Directorate  of Industries,   Government of West Bengal,   who  agreed to  serve  the  Board and to  be  governed by the  Act and  the rules and regulations made  there under as for the time being in force  shall, on and from first April 1960,   be deemed to  have been transferred to  the  Board.

4. Conditions of   service   and remuneration:

(1) The employees whose services   have  been  so   transferred   shall   serve   under  the  Board   in  temporary capacities on the same remuneration  as   before   such  transfer  until provision regulating   their conditions of   service   and   remuneration is  made   by  an order by the Board .    The past   services   of   such employees under   their respective employers   shall be taken into   account   to   such extent   as   the Board may, with the previous   approval of   the Government, lay down for   the   purposes   of   leave, increment and seniority   and   for   the purposes of   any other   benefits or   concessions to which Government   servants were   eligible on the   31st March   1960.

(2) In fixing the scale of pay and allowances of its own employees   the Board may   take into account the scales of   pay   and allowances of similar categories of Government   servants; Provided   that   in the cases where the maximum salary or the   honorarium exceed Rs.300 per month or wages exceed Rs.10 per day, previous approval of the Government shall   be taken.

5. Creation   of   posts: All posts  shall be created by the Board by passing resolutions to that effect. All orders regarding creation of posts of honorary workers shall be issued by the Secretary and of all posts other than those of  honorary   workers  by  the   Executive  Officer.

6. Board's power to make appointment:

(1) Whenever necessary the Board may appoint paid as well as honorary employees. The Board may allow such honorarium, traveling allowances, and daily allowances as it dooms fit, subject to the condition that where the honorarium exceeds Rs.300 per month previous approval of the Government shall be taken.
(2) In appointing its officers and employees the Board may consult a Selection Committee formed by the Board of one or more of its members or outsiders of or both. In the cases where the Selection Committee is formed and consulted, all appointments shall be made by the Executive Officer as per the recommendation of such Committee.

7. Promotion and increment:

(1) Having due regard to merit, promotion shall be made generally on the basis of seniority. The Board may treat any post or class of posts as selection post or posts to which promotion shall be made in the basis of merit only: Provided that the Executive Officer may in special cases, with the prior approval of the Chairman and recording his reasons for so doing, promote employees drawing loss than Rs.300 per month otherwise than on the basis of seniority.

(2) Where the Executive Officer is competent to create a post he may be authorized by the Board to grant higher initial pay or sanction increments retrospectively, recording in either case his reasons for so doing.

8. Classes of employees: The employees of the Board shall be of four classes, namely - Class I to Class IV, who may further be classified into different grades. The duties and the responsibilities of the employees shall be such as may be specified by the Board by order issued from time to time.

9. Board to lay down terms and conditions of services: Subject to the provisions of the Act, rules and regulations, the Board shall lay down the terms and conditions of services including age limit at the time of recruitment, minimum qualification and experience required, gratuity, contributory provident fund, and the conduct, discipline and appeal if all its employees and honorary workers except the Secretary and the Executive Officer. The Board may by order in writing relax any of those terms and conditions wherever it is necessary to do so in the interests, and in furtherance of the work,of the Board.

10. Conditions of deputation service: In the  case of Government  Servants whose   services  are  lent  to   the  Board,   the   terms  and  conditions of   services including pay,   traveling  allowances,   daily   allowances,   leave,   leave  salary, provident fund,   pension and gratuity  shall  be  such as may  be   laid down by the Government  at   the  time  of  deputation to   the  Board.

11. Requirement of medical   certificate:

(1)  Before   joining  any post under the  Board  for   the  first   time,   a  candidate   shall be   required   t o produce   a medical   certificate   of   fitness  from   such  authority  and  in  such form  as may be   specified by the Board from  time  to   time:Provided that  such certificate  shall  not be  required  in the   case of employees whoso  services have  been transferred to  the Board  and  who had once produced  such certificate.

(2)    Under  special   circumstances  the  Board may  allow a selected candidate to  join without producing  such certificate  beforehand,   but only on the condition that such candidate  shall produce it within one month from  the  date of  his joining.

(3)    In exceptional   cases where  it   is  necessary  in the  interest of  the work of  the Board to do  so,   the Board nay by order  in writing wholly exempt a candidate  from producing such certificate.

(4)    Whoa once  an employee of  the Board is discharged from  service for non-production of such certificate,  he  shall not be employed again under the Board without first producing such certificate in advance.

12. Period of probation or  trial  and confirmation: Every employee of the Board recruited against  a permanent vacancy shall be  on probation for  a period of  twelve months  and every employee of  the  Board recruited against  a temporary  vacancy  shall   be on a trial for  a period of  three months.  Such period  of probation or trial may be extended by the  appointing  authority  by six months  in individual  cases.   After  satisfactory  completion of such period of probation an employee   shall be  confirmed  and after  satisfactory completion of  such period of trial  an employee  shall   be  allowed to continue  in the  temporary post.

13. Age of  superannuation,   extension and re-employment: Every employee of the Board   other  than honorary workers  and Government servants employed on deputation  shall retire  on the  date on which he   attains  the   age   of fifty-five years Provided  that   the  Board may,   by special  resolution in each case,   extend the service  of  an employee,   by not more  than one year  at  a time,   up  to  the sixtieth year of his  age  or re-employ  an employee,   by not more  than one year .   at  a time,   on specific  fresh terms  of   service.

14. Appointment   of   over-aged persons: The Board may   also make fresh appointment   if persons  aged over fifty-five years for  a period not exceeding one year  at   a time.

15. Termination of   services: The  appointing authority or  any authority superior   to   the   appointing   authority  nay   terminate   the   services  of-

(a)    a temporary employee,   at any  time during the period of  trial without  notice   and  without  assigning   any  reasons therefore,   and after  satisfactory  completion of  the period of   trial  by one month's notice  in writing  or by payment of one month's  salary as  allowances in lieu of  the  notice;

(b)    an employee  appointed against a permanent post,   at any time  during the period of probation without notice and without assigning any, reasons therefore,   and after satisfactory completion of the period of probation on any of the following grounds,   namely :-

(i)  when he  is declared medically unfit for further service  ; and

(ii) when he absents himself from duties without permission of appropriate  authorities or he is guilty of  insubordination, intemperance or other misconduct :Provided that termination on any of the aforesaid grounds shall be in accordance  with the procedure laid down by regulations made by the Board in this behalf.

16. Traveling allowances:

(1) An employee of the Board shall be granted traveling and daily allowances to cover the expenses which he incurs in traveling in the  interest   of the Board at such rates  and on such conditions as may be  specified by regulations made  by  the Board in this behalf.  Until provision in this behalf   is made  by regulations an employee  of   the Board   shall draw traveling and daily  allowances at  similar rates  and on similar conditions as Government  servants   of  the  same  category  and grade.

(2) The  Executive Officer shall  be   the  controlling Officer in respect of the  bills regarding the   traveling and  daily  allowances of   an employee   of  the Board.

17. Leave  and  leave  salary: Until  provision in this behalf  is made  by  the Board  by regulations,   leave  including  study leave   and  leave  salary  shall be admissible   to   an employee   of  the Board  in accordance with the  rules and  orders applicable  t o  a  Government   servant  of   the   same  category   and  grade.

18. Deputation out  of   India: The  Board  may,   with  the  prior  approval  of   the Government,   depute   any of   its  members or employees  to proceed  outside   India in connection with  the  Board' s work or on the request of  a foreign Government, and  also grant  funds for  the purpose.

19. Amenities: The  Board  may,   out of  its funds,   provide for  its employees amenities,   such as  canteen,   recreation club,   lunch room,   ladies room,   etc.



Meetings of   the Board  and  appointment of  Committees  and  Sub-Cornmittees

20.  Notice of meeting and  list of business: Subject  to  the provisions of rule  10,   the  Secretary   shall  issue  notice   and draw up  agenda of meetings of the Board.

21.  Presiding   over meetings: The  Chairman shall ordinarily preside over all  the meetings.   In his absence in any meeting the members present  in the meeting shall            elect  one  of  them,  other than the Secretary,   to preside over the meetings.

22.  Quorum:

(1)  No   business  shall  be   transacted at  any meeting of  the Board  unless   a quorum  shall  be present.
(2)  One   third   of  the  total  number of members of  the  Board holding office  for   the   time  being  shall form  a quorum.
(3)  If at any meeting of  the Board a quorum is not present,   the   Chairman or any other member presiding at  such a meeting shall adjourn the meeting to another date.         The members present  at  such adjourned meeting shall form a quorum,   whatever their  number may be.

23.  Casting of votes :

(1)  All  questions  which may  come   before the  Board at a meeting shall  be  decided by a majority of votes of  the members present and voting  at  such a meeting.  In          case of equality of votes,   the person presiding  shall have and exercise  a second or casting vote.
(2)  Votes  shall ordinarily be  taken by voice or by show of hands, provided  that  votes shall  be  taken by ballot  when so demanded by members present at  the meeting          and  SO decided by the person presiding over the meeting,

24.  Minutes  of the meetings :

(1)  In accordance with clause (iii) of rule 10,  minutes   of  the proceedings  showing inter alia the names of  the members present  and the decision taken thereat of  all            meetings of  the Board shall be entered by the  Secretary in a book to be kept for the purpose,   and  shall be signed  by the  persons presiding over the meeting.
(2)  A copy of  the minutes of  the proceedings of all meetings of the Board  shall  within seven days be  forwarded by the  Secretary  to  the  Government.
(3) The  Secretary  shall lay the minutes before the next meeting of the Board for  confirmation which shall be  signed after confirmation by the person presiding thereat :           Provided that  when the office  of the  Secretary is vacant,   the Executive Officer  shall  enter  and lay the minutes as above and the  Chairman shall forward the  same         to  the  Government.

25.  Appointment of Committees and Sub-Committees for  specific purposes: The  Board may appoint committees or  sub-committees consisting of one or more of         its members or  outsiders  or of both for   specific purposes  to  assist or advice   the  Board in carrying out  its functions under the Act.


Payment,   deposit,   investment and  custody of monies on behalf of the Board.

26. Issue  of  sanction of  expenditure: Subject  to  the provisions of  sub-rule (4)  of rule 9 and clause (v) of rule 11, all orders sanctioning expenditure  shall be                  issued by the  Executive Officer on behalf of the Board.

27. Manner of payment: Save payments by way of  salary, wages, allowances and honorarium, all other payments on behalf of the Board of  amounts not exceeding                Rs.100 each shall be made  in cash and of amounts exceeding  Rs.100 each by cheques.

28. Drawing and  signing  of  cheques: All cheques  shall be drawn against the  current  accounts  of   the Board and shall  be  signed by  -

(a)  the  Secretary and,   in his absence,   the  Executive Officer when the value  of  the  cheque does not exceed Rs.10,000,   and
(b)  jointly by  the  Secretary  and  the   Chairman when the  value of the cheque  exceeds Rs.10,000.

29. Authentication of deposits :   All  deposits shall be  authenticated  by the  signature of  the  Secretary.

30. Petty  cash  and deposit  of   surplus money:

(1) Petty  cash required for meeting current expenditure  of  the Board   shall  be  in  the  custody of the Executive Officer or any other officer of  the Board  authorized by           the Executive Officer  in writing in this behalf.   The amount of  such petty cash shall be as determined  by  the Board from  time  to  time.

(2) The  Board may advance an imprest  sum not exceeding Rs.500 to  an Officer of  the Board for  incurring petty expenditure  within the powers delegate  to  him.   Such         officer   shall be  liable   to   account for   such an advance   and shall maintain proper  account  in the  form  specified in this  behalf  by  the Board.

(3) All monies not required for current expenditure shall be deposited forthwith in the bank in appropriate accounts of the Board.

31. Executive Officer - responsibility for expenditure and internal audit :
    The Executive Officer shall be responsible for ensuring that no expenditure is made from the funds of the Board unless provision for such expenditure has been made in          the budget or revised budget of the Board end unless funds are available for incurring such expenditure, and he shall also conduct necessary internal audit of such                expenditure for ensuring that such expenditure is incurred in accordance with the rules end regulations under the Act and the orders and instructions issued from time to        time by the Government or the Board.


Chairman,   West Bengal Khadi and Village Industries





In exercise of the powers conferred by 32 of the West Bengal Khadi-and Village Industries Board Act,  1959, (West Bengal Act XIV of •-l959), the-Governor is pleased hereby to make' the following rules namely:-


*  1  *



1. Short title -Those rules may may be called the West Bengal Khadi and Village, Industries Board Rules 1960.
2. Definitions - In these rules, unless the  context otherwise requires -                      

(a) "tho Act" means the.West Bengal Khadi and Village Industries Board Act, 1959 (West Bengal Act XIV of 1959) ;

(b) "the Board"  means' the Board established under section 3 ;

(c) "Chairman"  means the. .of the Board appointed under Sub-Section (2) of Section 4;

1(d) "Chief Executive Officer" means  the Chief Executive Officer of  the Board  appointed  under clause   (a)   of Section 5 ;

2(dd) "Financial Adviser" means the  Financial Adviser of the Board  appointed  under clause   (c)   of   Section  5 ;

(e) "Forrn"  means   form appended- to  these rules ;

(f) "financial year"   means   the year  commencing  on the   1st day  of  April ;

(g) "section"   means   a section  of the  Act ; -and

3(h) "Secretary" means the Secretary of the  Board appointed under clause (b) of Section  5 ;

4(i) "Vice-Chairman" means the Vice -Chairman of the Board appointed under Sub-Section (3) of Section 4;



3. Terns  of office  - Save  as hereinafter provided, a member of the Board shall hold office for three years :


1. Sub. under Notification No.394-Cot(Vl) dt. 20-1-86
2. Inserted under Notification No.394-Cot(vl) dt. 28-1-86
3. Substituted under Notification No. 394-Cot(Vl) dt. 28-1-86.
4. Same as in 2,


*  2  *

Provided that if the Board is dissolved by the State Government under Section 31, the members shall cease to hold office.

4. 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 directly or indirectly any interest in any subsisting contract with or in any work being done  for the Board except as a share holder (other than a Director or Managing Agent) in a company as defined in Section 3 of the Companies Act, 1956 (of 1956) ;

Provided that where ho is a share-holder, he will disclose to the Government the nature and extent of shares held by him in such a company ;

Provided also that membership of a Cooperative Society shall be no disqualification as  long as; the person  concerned  is not  a Director ; or

(e) if he has any financial interest in any business undertaking dealing with Khadi any Village industries as  defined in clause (d) of section 2  :

Provided that this shall not apply in the case of Cooperative Societies, where the member concerned is not a Director ; or

(f) If in the opinion of the State Government he has failed or is unable to carry out his duties; or

(g) If he absents himself from three consecutive meetings of the Board without the leave of the Board.

5. Removal from the Board - The' State Government may, by notification in he "Official Gazette  remove from office any member of the Board who is or becomes subject to any of the disqualifications  mentioned in rule 4;

Provided  that before issuing such notification  the State Government shall give an opportunity, to the member concerned to show cause against such removal.

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6. Casual Vacancies - A member appointed to fill a casual vacancy shall bold office for so long as the member whose place he fills would have been entitled to hold office if the vacancy had not occurred.

7. Salary and Allowances-5(i) The Chairman  6[the Vice-chairman] and other non-official members of the Board shall not be entitled to any salary but shall draw such honorarium and other allowances  as  may be fixed .by orders issued by the State Government from time to time. They shall also draw traveling and daily allowances for journeys' performed for attending the meetings of the Board and 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 State Government  from tine  to time at the  rates  admissible to Government servants of the first grade.   

(2). The  terms  and conditions of office (including the salaries, honorarium and allowances) of the chief Executive Officer, the Secretary and the Financial Adviser shall be such as the State Government may prescribe by rules.

8. Office of  the Board - The office of the’ Board shall be located in Calcutta or at such other place as  the State Government nay from time to time  direct.  ,


5. Substituted under Notification No.5411-Cot dt. 12-6-68
6.  Substituted  under Notification No.  394-Cot(VI)   dt.   28-1-86
7.   Same as in Sl. 6.


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9. Powers  of the Chairman - The Chairman shall generally discharge such functions and exercise such powers as may be considered necessary or expedient for the purpose of securing the efficient  discharge of the  functions of the Board and shall,  in particular, exercise the following powers :-

(i) The Chairman or, in his  absence, the Vice-Chairman shall, for the transaction for the business of the Board, in case  of urgency, exercise all the powers and perform all the duties required to be   exercised and performed under the Act, the rules or the regulations by the Board, except the  powers   of  sanctioning loans and grants or exgratia payment  :

Provided  that the Chairman  or the Vice-Chairman, as the case may be, shall not act in opposition to  or in   contravention  of   any order given  or decision taken by  the Board at its meeting.

(ii) All  orders  passed  and   acts  done  by  the  Chairman  or, in his absence, by the Vice-Chairman in exercise of his power and performance of his duties  under clause (i)  shall be placed for confirmation before  the Board at  its  meeting immediately following.

(iii) The Chairman shall have the power to call for any record of the Board or any report from the Chief Executive Officer to satisfy himself that the affairs of the Board are being conducted in accordance with the decisions of the Board.

(iv) The Chairman shall be  Appellate Authority in respect of all employees  of the Board of which  the Chief Executive Officer is   the   Appointing Authority.

(v) The Chairman  may delegate any of his powers wholly or partly to the Vice-Chairman for the   efficient functioning of the Board  subject  to  the responsibility, of the Chairman.


8. Substituted by Notification No.394-Cot(Vl)   dated  28-1-86


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(vi) The Chairman shall be the Controlling Officer in respect of the bills relating to the travelling allowances  and daily  allowances of the Chief Executive Officer, the Secretary and the Financial Adviser  and  the non-official|members of the Board including the Chairman.

(vii) The Chairman' shall be the appointing authority in respect of all posts belonging to Group 'A' and the Board shall bo the Appellate Authority in respect of officers holding such posts.

10. Powers and functions of the Chief Executive Officer : -

(i) The  Chief Executive Officer shall be the principal administrative officer of the Board and all other officers and  employees of the Board shall  be subordinate to him.

(ii) The Chief Executive Officer shall be the appointing authority  in respect  of all officers, except   those belonging to Group 'A', and employees of the Board, except the Secretary and the.Financial  Adviser.

(iii) The Chief Executive Officer shall supervise and control the work of all officers  and employees Of the Board.                      

(iv) The Chief Executive Officer shall be responsible for ensuring the implementation of the  decisions  of the Board.

(v) The Chief Executive  Officer shall -

(a) Cause important papers and matters requiring attention of the Board to be presented to the Board as  early as practicable

(b) maintain or cause to  be maintained an account of the receipt and expenditure of the Board in   consultation with the Financial Adviser and

(c) present a draft annual report of the working  of the Board to the Board for approval and submit the  report as approved by the Board to the  State Government. The report as approved by the Board shall be  circulated to the members of the Board for their information.   




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(vi) The Chief Executive Officer may sanction expenditure on contingencies, supplies and services and purchase of articles required for the working of the office of the Board and for the execution of measures in furtherance of the object of the Act, subject to necessary provisions in the budget.

(vii) The Chief Executive Officer may delegate any of his powers wholly or partly to the officers  subordinate to him, with the approval of the Chairman,for the efficient functioning of the Board's  office.

(viii) The Chief Executive Officer shall attend, and participate in, all meetings of the Board, but shall not be entitled to vote. He however shall have the right to record his views in case he disagrees with any resolution adopted by the board.

(ix) The Chief Executive Officer shall have power  (a) to institute or defund legal proceedings by or on behalf of the Board, subjected to the approval of the Chairman and (b) to enter into compromise or refer any dispute to arbitration for and on behalf of the Board, subject to the approval of the Chairman.
(x) The Chief Executive Officer shall do all  other acts that are necessary for carrying on generally the day-to-day administration of the Board.

(xi) The-Chief Executive Officer shall examine application for assistance and place the same before the Standing    Finance Committee/Board for sanction.

(xii) The Chief Executive Officer shall have the right to refer to the Board any matter which in his  opinion ought to be  brought to the notice  of the Board.

(xiii) The Chief Executive Officer shall have the right to record his opinion in consultation with the Financial Adviser on any proposal for incurring expenditure from funds of the Board, prior to the consideration  of such proposal by the Board.

(xiv) The Chief Executive Officer may perform such other duties and exercise such other powers as  may be  assigned   to  him by   the  Board  or the  State Government fron time to time.

(xv) In the  event of any difference of  opinion  between the Chief Executive Officer and the Board  with regard to any matter  concerning  the affairs of the Board not covered by the Act, the rules and the regulations, the Chief Executive Officer nay refer the matter to the State Government and the  decision of the State Government there on shall be final.


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10.  Powers of the Secretary  and  the Financial  Adviser

(1) The  Secretary shall work under the general control and supervision of the Chief Executive Officer and shall generally assist, the Chief Executive Officer and  exercise such powers of the Chief Executive Officer as may be delegated to him and, in particular, shall exercise the following powers  and duties :-

(i) Convening of meetings of the Board and the Committees; 

(ii) Drawing up of agenda for each meeting under directions of the Chief Executive Officer and the Chairman  and supplying the same to each member of the Board along with the notice of the meeting ;

(iii) Maintenance of the minutes of the meeting of the Board and the committee.

(iv) Furnishing to the State Government all reports including annual reports and returns and necessary documents required under the Act  or the rules ;   

(v) Discharging such other duties, as may be assigned to  him by the Chief Executive Officer from time to time.

(2) The Secretary shall keep a; record of the members of the Board and their address.  If a member changes his address, he shall notify his now address to the Secretary who shall thereupon enter his new address in the- record. But if the member fails to notify his new address, the address on official record shall for all purpose, be deemed  to  be the  member's address.

(3) The Financial Adviser shall work under the general control and supervision of the Chief Executive Officer. He shall be entitled to attend the meetings of the 'Board, but shall not  be  entitled to vote.
He  shall   -
(n)   maintain       (contd.) .............8

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(a) maintain or cause to be maintained an account of the receipt and expenditure of the Board and act as  the Drawing and Disbursing Officer in respect of all the employees of the Board  ;

(b) Prepare annual budget estimates and supplementary budget estimate under the direction of the Chairman and the Chief Executive Officer and place these before the Board along with the views of the Chief Executive Officer.

(C) receive all moneys on behalf of the Board and issue receipts in effectual discharge of the moneys stated to have been, received therein;

(d) operate accounts of the Board lying with the Bank singly upto such limits and with such other officers of the Board beyond that limit as the Board nay direct;

(e) draw, accept, endorse or negotiate all bills of exchange, promissory notes,debentures, securities
and other documents standing; in the name of or hold by, the Board.    

(f) advise the Chief Executive Officer, the Standing Finance Committee and the Board on all natters having financial implication;

(g) have the right, in consultations with the Chief Executive Officer to refer to the Board any matter having financial implication Which in his opinion should be brought; to the notice of the Board;

(h) have the authority to advise the Board in consultation with the chief executive officer that a particular decision of affecting the financial, policy of the State Government should be referred to the State Government  for consideration.

(i) arrange disbursement of funds-rafter approval by the competent authority;

(j) arrange for  the  maintenance of proper accounts  of the Board;

(k) arrange internal checking of,the accounts of cooperative Societies/Institutions/Individuals receiving financial assistance error the Board;


*  9  *

(l) Cause preparation of annual reports of accounts for submission to the State Government or to the khadi and village industries commission; 

(m) arrange of the maintenance or proper accounts and arrange disbursement of contributory Provident Fund of the board.

(n) perform such other duties and exercise such other powers as may be assigned to him by the board or the chief executive officer from time to time.

11.    powers and functions of the standing finance committee

The standing finance committee shall have the following duties:-

i) to examine and consider the annual budget of the board including supplementary budget before submission on to the board/khadi and village industries commission and the state government. 

ii) To deal with the application for sanction of financial assistance referred to the committee by the board.

iii) To examine and consider the proposal for opening of the direct production centers and gramins and to make recommendations to the board.

iv) To recommend creation of posts to the board.

v) To consider the proposals for expenditure beyond the financial powers of the chief executive officer.


*  10  *

vi) to exercise such other powers  and perform such other functions as nay be delegated to it by the Board or by the State  Government from time to time.



12. Annual programme - (l) The  programme, of work referred to,in section 15 shall  be prepared by the board during every financial year, for the next financial year in Form I and  shall  be forwarded to the State Government before the 50th September in the year in which it is prepared :

Provided that for the year 1960-61 the Board may work according to the programme and budget as  prepared by the Director of Industries, West Bengal,and approved by the State Government.

(2) A supplementary programme, if. any, under section 16 shall be prepared by the Board in any financial year in Porn II and  shall be forwarded to the State Government before the 30th June in that year.

13. Budget - (l) Two separate budgets, namely, Khndi Budget and the Village Industries Budget referred to in section 17 shall  be prepared by the Board during every financial year for the next financial year in  Form III and shall be submitted to the State Government before the 1st October in   the year in which it is prepared.

(2) A supplementary  budget, if any, referred to in Section 18 in any financial year shall be prepared  by  the Board in Form IV and shall be submitted to the State Government in the first week of January  in that year.


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14.    Annual Report - (1) The Annual report referred to in Section  26 shall be  prepared by the  Secretary in Porn V under the  direction  of the Chairman  9[and  the Chief Executive Officer]  and shall  be  paid  before  the Board. After  the  report is  approved by  the Board, copy of the report shall  be  forwarded  to  the State Government and the  Director of 10 [Cottage and Snail  Scale  Industries] West Bengal before the  expiry of the period specified in the said section.

(2) The Secretary shall, under the direction of the Chairmen 11[and the Chief Executive Officer]     prepare quarterly progress report in Form VI. The report shall be laid before the Board. After the  report is approved by the Board,copy of the report shall be forwarded to the State Government and the  Director 12[Cottage and Snail Scale Industries] West Bengal.

15.    Annual Statement of Accounts - (l) Within six months of the close of each financial year,  the annual statement of  accounts referred to in sub-section (l) of section 24 shall be prepared in Form VII showing the financial results of any schemes, works or under takings by the Board in that year.


9. Inserted by Notification No.394-Cot(VI) dt. 28-1-86 C. & S.S.I.Deptt.,
.10. Substituted by Notification as in SI. 9.
11.    Inserted by Notification No.394-Cot(VI) dt. 28-1-66
12.    Substituted by Notification No.394r-Cot(VI) dt. 28-1-66.

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15.(2)   - The  accounts  shall  be  maintained in  the forms and registers mentioned below :-

Form No. VIII  -   Cash Book.
Form No.  IX   -   Subsidiary Accounts in Cash Book.
Form No.   X   -   Classified Abstract of Receipts/Disbursements.
Form No.  XI   -   Register of Securities.
Form No.  XII  -   Receipt for payment to the Board.
Form No. XIII  -   Register of Cheque Books,
Forrn No. XIV  -   Register of Stock of-Receipt Books.
Form No. XV   -   Register of Stock of Furniture
Form No. XVI  -   Register of Advance Permanent/Temporary.  
Ferm No. XVII -   Annual Account  of Receipts/Expenditure.

16.     Contracts (l) The Board may, in furtherance of the object under the Act, enter into contracts provided provision therefore, exists  in  the sanctioned budget

(2) The Board  nay  delegate  to  the  Chairman, the Chief Executive Officer or the Secretary such  powers for entering into contracts, signing of agreement or execution of bonds or undertakings o its behalf as it may think fit.

(3) No contract shall be binding on the Board unless it is executed by the Chairman, the Chief Executive Officer or the Secretary.


13.   Omitted   by Notification   No. 394-Cot (VI)   dated   28-1-86.
14.   Substituted   under Notification Nc.394-Cot (VI)   dated  28-1-86.

*  13  *

(4) The Chairman, the Chief Executive Officer, the Secretary or any member of the Board shall not be liable for any assurance  or contract made by the Board,and the liability arising out of ouch assurance  or contract shrill be discharged from the moneys at the disposal of the Board.



17.    Power to make grants - (1) The board shall disburse grants in accordance with and at rates and on terns sanctioned by the State Government in respect of each Industry from time to time. The State Government may, or its motion or on the recommendation of the Board or of "the Khadi and Village Industries Commission modify or supersede the financial rates and terms previously sanctioned.

(2) The Board nay reduces the rate at which grants are payable in individual cases to such extent, as it thinks necessary,but shall not enhance such rates exception with the prior approval of the State Government.

15(3) Deleted.

18.   Power to advance loans - The Board shall advance loans in accordance with and at rates and on terns sanctioned by the Govornment in respect of each industry from time to time.


15. Deleted under Notification No.l896-Cot(VI) dated 6-5-81.

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19.    Power to borrow - The Board may, with the previous sanction of the State Government, borrow on the security of its funds or assets.

20.    Power  to  write  off  losses - (1) The Board may write off losses up to Rs.1,000/- per  annum in  the following cases :-

(a) loss  of irrecoverable value of stores or of public money due to theft, fraud or the negligence of
individuals or other cases;

(b) loss of irrecoverable advance other than loans ; and

(c) deficiency and depreciation in the value  of stores subject to the conditions —

(i) that the loss does not disclose a defect of system, the amendment of which requires the orders  of the State Government; and

(ii) that there has not been any serious negligence or the part of individual employee or employees of the Board which night possibly call for disciplinary action requiring the orders of the state  Government.

(2) The Board shall take suitable action against the persons responsible for the loss and send a report  to Government on   the  action  taken.

Exception — Nothing contained in this rule shall apply to losses occasioned by irrecoverable loans. Sanction of the State government shall be obtained before such losses are written off.

21. Custody of common on seal - The common seal of the Board shall remain in the custody of  16[The  Secretary] of the Board.


6.   Substituted   under notification No. 394-Cot ( VI)   dt.   28-1-86

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