Keyword(s):
Khadi, Village Industry Amendment appended: 18 of 2009

STATEMENT OF OBJECTS AND REASONS
I
Act 7 of 1957.— Not available.
II
Amending Act 25 of 1958.—At the time when the Mysore Khadi and Village Industries Bill
was introduced in the Legislative Assembly, the corresponding Board at the Centre known as the
All India Khadi and Village Industries Board, was in existence. The All India Khadi and Village
Industries Board has since been made a statutory body and is known as the Khadi and Village
Industries Commission. As the Mysore State Khadi and Village Industries Act makes a reference
to the All India Khadi and Village Industries Board, a few verbal changes are found necessary in
the Act so as to incorporate in the State Act the expression ‘Khadi and Village Industries
Commission’ wherever the expression ‘All India Khadi and Village Industries Board’ appears.
Hence the Bill.
(Notification No. LC 272 dated 1st May 1958. Obtained from file No. LAW 2 LGN 57.)
III
Amending Act 9 of 1973.—The Khadi and Village Industries Commission, Bombay, has been
requesting the State Government to appoint a Financial Adviser and Chief Accounts Officer
preferably from the Indian Audit and Accounts Service Cadre in the Mysore State Khadi and
Village Industries Board. The appointment of such an officer is necessary for the proper
maintenance of the accounts of the Board. A Financial Adviser and Chief Accounts Officer has
been appointed in the Khadi Boards of many other States. Under section 9 (2) of the Mysore
Khadi and Village Industries Act, 1956 there is provision only for the appointment of an Accounts
Officer by the State Government from among its officers. The proposed amendment to the Act is
to facilitate the appointment of a Financial Adviser and Chief Accounts Officer from among the
officers of either the Central Government or the State Government. It is proposed to provide for
this by suitable amendments to sections 9 and 31 (2) (i) of the Act.

The Khadi and Village Industries Commission grants loans to the State Board which in
turn advances funds to registered institutions. There is no provision in the Act to recover the dues
as arrears of land revenue. The Commission has suggested that provision be made in the Act for
this purpose as has been done in the Bombay Khadi and Village Industries Act. The Bill proposes
to provide for this by insertion of a new section 22A to the Act.

  1. (i) The Khadi and Village Industries Commission advances funds by way of grant and
    loans to the State Khadi and Village Industries Boards for implementation of the Khadi and
    Village Industries programme in the States. These advances are made in the bona fide belief that
    the State Boards being creations of the State Legislature are the responsibility of the State
    Government and as such the advances made by the Commission to the State Boards which are
    deemed to have the full financial backing of the State Governments are as secure as advances
    made to the State Government.
    (ii) As a result of the situation arising out of the recent dissolution of the Orissa Khadi and
    Village Industries Board, the Khadi and Village Industries Commission desires the State
    Government to ensure the security of the funds advanced by the Commission to the Mysore
    Board for the development of Khadi and Village Industries in this State.
    (iii) The Khadi and Village Industries Commission is a service agency assisting the State
    Board in developing Khadi and various Village Industries in the State and the Commission,
    therefore, desires that the funds advanced by them to the State Board may be made secure for
    continuing development of the industries in the State. The Commission has also intimated that
    the Government of West Bengal have recently decided to incorporate appropriate provisions in
    their Act, for this purpose.
    (iv) The Bill proposes to provide for this in the Mysore Khadi and Village Industries Act,
    1956 by insertion of new section 30A in the Act.
  2. The Committee on Subordinate Legislation recommended in its VII Report that the Mysore
    Khadi and Village Industries Act, 1956 may be amended making provisions for laying before the
    Legislature the rules framed under the Mysore Khadi and Village Industries Act, 1956. Under the
    existing Act; there is no such provision to place the rules before each House of the State
    Legislature.
    In the Andhra Pradesh, Tamilnadu and Bombay Khadi and Village Industries Acts, there is a
    provision to place the rules issued under the Acts before their State Legislatures. Besides in the
    Khadi and Village Industries Commission Act 1956, there is a provision to place all the rules
    issued under that Act before both Houses of Parliament.
    It is proposed to make similar provision in the Mysore Act by adding sub-section (3) to section
    31 of the Act.
    (Published in the Karnataka Gazette (Extraordinary), Part IV-2A, dated 19-10-1972, as No.
    415, at page. 5-6.)
    IV
    Amending Act 16 of 1978.—There is no provision in the Act for grant of leave to the
    Chairman and for making in-charge arrangement during the leave period. It is considered
    necessary to provide for the same.
    According to the existing provision, the State Government can appoint upto 15 Members on
    the Board, which will no doubt, become unwieldy. It was considered necessary to restrict the
    maximum number to nine.