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THE MIZORAM

KHADI AND VILLAGE INDUSTRIES BOARD

RULES 1988

 

 

 

 

 

 

 

 

 

 

 

 

( FOR OFFICIAL USE ONLY)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GOVERNMENT OF MIZORAM

INDUSTRIES DEPARTMENT

 

No. B. 16021/25/86-ind/pt.  Dt. 31.8.88.  In exercise of the power conferred under Section 39 of the Mizoram Khadi and Village Industries Board Act, 1982 (Mizoram Act 3 of 1985) and of all other powers enabling in that behalf, the State Government of Mizoram is pleased hereby to make the following rules, namely :-

 

THE MIZORAM KHADI AND VILLAGE INDUSTRIES BOARD RULES, 1988

 

CHAPTER   I

 

PRELIMINARY

 

1.

Short Title

:

1)

These rules may be called the Mizoram Khadi and Vullage Industries Board Rules, 1988.

 

 

 

2)

They shall be deemed to have come into force on the 1st march 1986.

2.

DEFINITIONS

:

 

In these Rules, unless the context otherwise requires :-

 

 

 

a)

“Act” means the Mizoram Khadi and Village Industries Board act, 1982;

 

 

 

b)

Board means the Board established under section 3;

 

 

 

c)

“Chairman” means Chairman of the Board appointed under Sub-Section (2) of Section 4;

 

 

 

d)

“Chief Executive Officer” means the Chief Executive Officer appointed under Section 8;

 

 

 

e)

“Commission” means the Khadi and Village Industries Commission established under Section 4 of the Khadi and Village Industries Commission Act, 1956 (Central Act 61 of 1956);

 

 

 

f)

“Committee” means a Committee constituted under Sections 15 and 16;

 

 

 

g)

“Financial Adviser” means the Financial Adviser appointed under Section 7;

 

 

 

h)

“Financial Year” means the year commencing on the first day of April;

 

 

 

i)

“Government” means the Government of Mizoram;

 

 

 

j)

“Khadi” means any cloth woven on handloom in India from cotton, silk or woolen yarns handspun in India or from mixture of any two or all of such yarn includes ready-made garments made out of such clothes;

 

 

 

k)

“Scheduled” means a Scheduled mentioned in the Act;

 

 

 

l)

“Secretary” means the Secretary of Board appointed under Sub-Section 4 of Section 4;

 

 

 

m)

“Section” means a Section of the Act;

 

 

 

 

n)

“Vice-Chairman” means the Vice-Chairman of the Board appointed underSub-Section (3) of Section 4;

 

 

 

o)

“Village Industries” means Industries defined under Sub-Section (j) of Section 2;

 

 

 

p)

“Working Capital” means the capital for production and sales consisting of borrowed capital and owned capital;

 

 

 

q)

All works and expressions used in these shall bear the meanings respectively assigned to them in the Act;

 

 

 

 

 

CHAPTER II

 

TERMS AND CONDITIONS OF THE OFFICE OF THE BOARD

 

3.  OFFICE OF THE BOARD  : The Office of the Board shall be located in Aizawl or at such other place as the Government may, from time to time direct.

 

4.  TERM OF OFFICE  :  The Chairman, the Vice Chairman, the Secretary and any other member of the Board shall hold Offices for a period of three years from the date of his appointment and shall be eligible for re-appointment.

 Provided that, if the Board is dissolved as per provisions under Section 36, all the members shall cease to hold Office.

 

5.  DISQUALIFICATIONS FOR MEMBERSHIP OF THE BOARD : A person shall be disqualified for being appointed as, and for being, a member of the Board as the case may be :-

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

e) If any work being done for the Board except as share-holder (other than a Director or Managing agent) in a Company as defined in Section 3 of the Companies act 1956;

 

Provided that membership of a co-operative society shall be no disqualification as long as the person concerned is not a Director or a Managing Director;

 

f) If he has any financial interest in any business undertaking dealing with Khadi or any Village Industries as defined in clause (f) and (j) of Section 2;

 

Provided that this shall not apply in the case of co-operative society, where the member concerned is not Director or Managing Director; or

 

g) If in the opinion of the Government he has failed or is unable to carry out his duties.

 

6. REMOVAL OF A MEMBER FROM THE BOARD :  The Government may, by notification in the Official Gazette, remove from Office any member of the Board who is or becomes subject to any of the disqualifications mentioned in rule 5.

 

7.  CASUAL VACANCY  :  When a member of the Board resigns or dies or is removed from Office, the Government may, by notification in the Official Gazette, appoint the person to fill the vacancy. Such member appoint ted shall hold Office for the unexpired term of his predecessor.

 

8. SALARY AND ALLOWANCES : (1) Any member of the Board who is functioning the duties of the Chairman, Vice Chairman, and Secretary in full time shall draw such salary and other allowances as may be decided by the Government from time to time.

 

            (2)        Not withstanding anything contained in Sub rule (1), the Chairman, Vice Chairman, Secretary and other non official member of the Board shall not entitle to any such salaries and allowances unless he performs such duties in full time but shall draw such honorarium as may be fixed by the Government from time to time.

 

  1. Sitting Allowances : All Non-official members of the Board who are not entitled to an honorarium shall be entitled to a sitting allowance at the rate of one hundred rupees per sitting day. Member workers who entitled to an honorarium shall not be entitled to a sting allowance.
  2. Travelling Allowance and Daily Allowance :  All members of the Board shall be entitled to Air Travel in economy class or first class or air- condition berths in Railway train and Deluxe Bus fare, They shall also be entitled to daily allowance at the rate admissible to first Grade Officer of the Government of Mizoram per day while performing duties.
  3. The Official status of Chairman other than ex-officio Chairman will be treated equivalent to the rank of the Minister and the Secretary to the rank of the Deputy Minister and the non-official members of the Board to the rank of Grade-I (Senior Grade) Officer to the Government.

 

 

 

 

 

 

 

 

 

 

 

CHAPTER III

 

POWERS AND DUTIES OF THE CHAIRMAN, THE VICE-CHAIRMAN, THE SECRETARY, THE CHIEF EXECUTIVE OFFICER AND

THE FINANCIAL ADVISER :

 

9.         (1)        The Chairman shall be responsible for the proper functioning of the Board and the implementation of its decision and discharge of its duty under the Act.

 

  1. The Chairman shall :-
    1. Cause the important papers and matters to be presented to the Board as earliest practicable;
    2. Issue directions as to the method of carrying out the decisions of the Board.
    3. Maintain or cause to be maintained account of the receipt and expenditure of the Board; and
    4. Present a draft annual report of the working of the Board to the Board and submit the report as approved by the Board to the Government. The report as approved by the Board shall be circulated to the members of the Board for their information.

 

  1. The Chairman shall exercise administrative control over all Officers of the Board.
  2. The Chairman shall be the Controlling Officer in respect of bills regarding travelling allowances payable to himself, the other members, the Chief Executive Officer and the Financial Adviser and Chief Accounts Officer of the Board.

 

10.       DUTIES AND FUNCTIONS OF VICE CHAIRMAN : The Vice Chairman shall assist the Chairman in the proper functioning of the Board, the implementation of various decisions of the Board and generally in the discharge of its duties and funtions under the Act. He shall also perform such other duties and  carry out such other functions as may be assigned to him by the Board or the Chairman.

 

11.       POWERS OF SECRETARY :

 

(1)        The Secretary shall work under the general control of the Chairman who may delegate to him such powers and duties including the following powers and duties :-

 

  1. convening of meetings of the Board under the direction of the Chairman.
  2. drawing up agenda for each meeting under the direction of the Chairman and supplying the same to each member of the Board along with the notice of the meeting.
  3. maintenance of minutes of the meeting of the Board.
  4. Furnishing to the Government all reports including annual reports and returns and necessary documents required under the Act or the rules.
  5. Preparation of annual budget of the Board in consultation with Financial Adviser and the Chief Executive Officer.

 

  1. The Secretary shall keep the record of the members of the Board and their addresses. If a member changes his address, he shall notify his new address to the Secretary who shall thereupon enter new address in the record. But if the member fails to notify his new address, the address on the Official records shall for all purpose be deemed to the member’s address.

 

12.       POWERS OF THE CHIEF EXECUTIVE OFFICER :

 

  1. The Official status of the Chief Executive Officer shall be treated equivalent to the rank of the Head of the Department of the Government for the purpose of the Government facilities.
  2. The Chief Executive Officer shall work under the control of the Chairman or under the direction of the Secretary. He shall be entitled to attend all meetings but shall not be entitled to vote. He shall :
  3. supervise and control the work of Officers and servants employed by the Board.
  4. Implement the decisions taken by the Board;
  5. Frame annual budget estimate and supplementary budget estimate under the direction of the Secretary and place them before the Board along with the views of the Financi8al Adviser.
  6. Administer the contributory provident fund of the Board when established.
  7. Sanction contingent expenditure to the extent of powers delegated to him by the Board from time to time.
  8. Examine applications for financial assistance (both grants and loans) and place them before the Board for sanction;
  9. Have the right to record his views in consultation with Financial Adviser on every proposal involving expenditure from funds of the Board, prior to consideration and approval of such proposal by the Board; and
  10. Undertake such other duties and exercise such other powers as may be assigned to him by the Board of the Chairman.

 

13.       POWERS AND FUNCTION OF THE FINANCIAL ADVISER :        Subject to the general control of the Board; the Financial Adviser of the Board shall ;

(i)         advise the Board and its committees on all matters relating to receipts and expenditure of the Board

(ii)        advise and assist the Chief Executive Officer in the maintenance of accounts of the Board and in the preparation of its budget and other financial statements and returns. He shall also assist the Chief Executive Officer in the proper audit of Accounts of the Board.

(iii)       have the right to record his views on every proposal involving expenditure from the funds of the Board and shall have the authority to advise the Board and its committees that a particular decision or proposal affecting the financial policy and directions of the State Government and or the Khadi and Village Industries Commission should be referred to the State Government and/ or the Khadi and Village Industries Commission, as the case may be; and

(iv)       have the right to attend every meeting of the Board and its committees but shall not have the right to vote thereat. He shall also have the right to refer to the Board and its Committees any matter having financial implication which in his opinion ought to be brought to their notice;

(v)        he shall be the member of the Standing Finance Committee.           

 

 

 

 

CHAPTER  IV

 

 

ANNUAL PROGRAMME, BUDGET AND ACCOUNTS

 

14.  ANNUAL PROGRAMME :  The programme or schemes of works referred to in section 21 of the Act  shall be prepared by the Board during every financial year, for the next financial year in Form I containing particulars stated therein; and shall be forwarded to the Government and the Commission before the 30th September in the year in which it is prepared.

 

15.  SUPPLEMENTARY PROGRAMME :  a supplementary programme, if any under Section 23 of the Act shall be prepared by the Board in any financial year in Form II and shall be forwarded to the Government and the Commisssion before first October in the year in which it is prepared.

 

16.  BUDGET  :  The budget under Section 29 of the Act shall be prepared by the Board during every financial year for the next financial year in Form III or the Form as the Commission may prescribe and shall be submitted to the Government and the Commission before first October in the year in which it is prepared.

 

17.  SUPPLEMENTARY BUDGET  :  A supplementary budget, if any, under Section 30 of the Act shall be prepared by  the Board in Form IV or the Form as the Commission may prescribe and shall be submitted to the Government and the Commission before first week of January in the year in which it is prepared.

 

 

 

 

18.  ANNUAL REPORT  :  1) The annual report under Section 31 of the Act shall be prepared by the Chief Executive Officer under the direction of the Chairman and shall be laid before the Board. After the report is approved by the Board, copies of the report and statement shall be forwarded to the Government and the Commission before the expiry of the period specified under Section 31 of the Act.

 

2)  a quarterly progress report shall be prepared by the Chief  Executive Officer in Form V and copies thereof shall be submitted to the Government and the Commission time to time.

 

19.  REPORTS AND RETURNS  :  The reports and returns under Section 32 of the Act shall be prepared by the Chief Executive Officer under the direction of the Chairman for submission to the Government and the Commission as the Government may, or the Commission as the case may be, may, from time to time required.

 

20.  CLASSIFICATION OF RECEIPT AND EXPENDITURE  :  The receipt and expenditure of the Board shall be classified under such major, minor and subordinate heads of accounts, as the Government may, in consultation with the Board, direct and shall be shown under such further detailed heads of accounts as the Board may consider necessary for the purpose of information and control.

 

21.  ANNUAL STATEMENT OF ACCOUNTS  :  1) Within six months of the close of the financial year, the annual statement of accounts, the Profit and Loss Account and the Balance Sheet  referred to in section 33 of the Act shall be prepared in Form VI and VII in respectively, showing and financial results of any schemes or works undertaken by the Board in that year and the financial position of the Board.

 

2) The accounts shall be maintained by the Financial Adviser and Chief Accounts Officer in the Forms and register as the Board may prescribe.

 

22.  RESERVE FUND  :  1)  The Board shall establish a reserve fund which shall be managed and applied for in the manner here in after provided.

 

2) All the miscellaneous revenue and receipts as calssified by the Board in its annual accounts, in consultation with the Directorate of Accounts and Treasuries, Government of Mizoram, shall be credited to the reserved fund.

 

3)  Such sums as may be decided by the Board with the prior approval of the Government (Industries Department, Government of Mizoram), may also be appropriated for the purpose of Board’s activities, even before an outstanding dues against the Mizoram Khadi and Village Industries Board is paid off.

 

 

 

 

 

4)  The reserve fund may, with the previous approval of the Government, be applied for all or any of the following purposes namely :-

 

 

a)  Promotion and development of Khadi and Village Industries;

b)  meeting losses incurred by the Board in carrying out the Board’s activities;

c) writing off loses incurred in carrying out the Board’s activities;

d) undertaking Board’s construction programmes;

e) financing the benefit fund of the staff; and

f) for such other purposes connected with the activities of the Board or for the benefit of the Board.

 

 

CHAPTER  V

 

MISCELLANEOUS

 

23.  CONTRACTS  :  1)  Every contract or agreement on behalf of the Board under Section 19 of the Act shall be in writing and shall be signed and sealed with the common seal fo the Board.

 

2)  The Chairman as provided under Section 19, may delegate to the Secretary or the Chief Executive Officer, on behalf of the Board for entering into any contract or agreement in writing provided the amount of contract or agreement shall not wxceed ten thousand rupees per contract or agreement.

 

3)  Any other contract or agreement on behalf of the Board beyond the value of one thousand rupees shall be entered into by the Chairman in the presence of any other two members of the Board, who would attach their signature to the contract or agreement in taken that the same was signed in their presence. The signature of such members shall be in addition to the signature of any witness to the execution of such a contract or agreement.

 

Provided that in case of any contract or agreement on behalf of the Board with the Commission, such contract or agreement shall be signed and sealed by the Chairman only.

 

4)  The common seal of the Board shall remain in the custody of the Chief Executive Officer.

 

24.  APPOINTMENT OF COMMITTEES  :  1)  The Board as provided under Section 15 of the Act may constitute by resolution the Standing finance Committee;

 

2)  The Board may also from time to time, constitute other committee as provided under Section 16 of the Act for the specific purposes or for any particulars area of areas;

 

3)  Each of the Committees may appoint one of the Officers of the Board (other than the Chief executive Officer) to be a Secretary of such Committee.

 

 

25.  POWER TO SANCTION GRANTS, SUBSIDIES AND LOANS  :

 

1)  GRANTS AND SUBSIDIES  :  The Board shall disburse grants and subsidies to the registered industrial co-operatives, registered institutions and individuals for the purpose of the Act in accordance with and at the rates and on terms and conditions sanctioned by the Government or the Commission in respect of each industry from time to time, from the funds made available by the Government or the Commission, as the case may be.

(2) LOANS : The Board shall disburse Loans in accordance with and at rates and on terms to the registered industrial co-operatives, registered institutions and individyuals from the funds madeavailable by the Comiission to the Board under the terms and conditions of the Government or the Commission for such Loans. The limitation of the Government Loans rules shall not apply to the Loan funds aavailable from the Commission.

 

26.  POWER TO BORROW  :  1)  The Board may, with the previous sanction of the Government borrow on the security of  its funds or assets.

 

27.  POWER TO WRITE OFF LOSSES  :  1) The Board, as provided under Section 35 of the Act shall be competent to write off losses on the condition that :-

 

a) The Loss does not disclose a defect of system, the amendment of which requires the order of the Government and

b)  There has not been a ny serious negligence on the part of the individual employee or employees of the Board which might  possibly call for disciplinary action requiring the order of the Government.

 

2)  The Board shall take suitable action against the persons responsible for the laws and sent a report to the Govenment   on the action taken.

 

EXCEPTION  :  Nothing contained in this rules shall apply to losses occasioned by irrecoverable loans. Sanction of the Government shall be obtained before such loans are written off.

 

 

 

 

 

 

 

 

 

 

FORM – I

( See Rule 14)

Programme of Work to be done

 

i) Description of work to be done

ii) Area selected

iii) Manner in which the scheme or work is to be carried out.

iv) Whether the area selected is suitable for the work to be carried out.

v)  Estimated expenditure

vi)  Estimated receipts.

 

 

 

 

 

FORM – II

(See Rule 15)

Supplementary Programme

 

i) Description of the work to be done

ii) Area selected

iii) Manner in which the scheme or work is to be carried out.

iv) Whether the area selected is suitable for the work to be carried out.

v)  Estimated expenditure

vi)  Estimated receipts.

vii)  Reasons and full justifications for the supplementary programme.

 

 

 

FORM – II

(See Rule 16)

Budget estimates for the year

 

i) Description of the work to be done

ii) Area selected

iii) Number of centres to be opened, if any.

iv) Number of persons to be trained, if any.

v) Progress of work done during the year.

a) Centres opened-

b) Persons trained –

c) Khadi Wooven in matres, cane etc, prepared in kilograms.

vi) The grants actually sanctione during the current year.

vii) Actual expenditure incurred during the last three years. (separate figure foe each year should be given).

viii) Actual receipts accrued during the year

ix) Estimated expenditure on account of the scheme. For office staff, details of establishment as in the accompanying statement should be furnished. ( Recurring and Non- recurring expenditure figures to be shown separately).

x) Reasons if any, wxcess grant is to asked for during the next financial year.

           

Details of pay of Establishment. ( As in Appendix ‘A’).

 

 

 

FORM – IV

( See Rule 17)

Supplementary Budget

 

i) Description of the work to be done

ii) Area selected

iii) Number of centres to be opened, if any.

iv) Number of persons to be trained, if any.

v) Progress of work done during the year.

a) Centres opened -

b) Persons trained –

c) Khadi Wooven in metres, Palm Gur etc, prepared in kilograms.

 

vi) The grants actually sanctione during the current year.

vii) Actual expenditure incurred during the last three years. (separate figure for each year should be given).

viii) Actual receipts accrued during the year

ix)  Estimated expenditure on account of the scheme. For office staff, details of establishment as in the accompanying statement should be furnished. ( Recurring and Non- recurring figures to be shown separately).

x) Reasons, if any, excess grant is to asked for the  financial year.

xi) Reasons and full justification for the supplementary grant with facts and figures etc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM V

( See Rule 18(2) )

 

Quarterly Progress Report

 

Sl. No.

Name of the Scheme

Brief description of the scheme

Amount of Grant sanctioned for the scheme Govt. resolution

Amount drawn during the end of the previous quarter

Amount drawn during the quarter

Total Balance amount of grant drawn available (Total form of expenditure 5 & 6)

Position on the scheme at the previous quarter ( into figure)

1

2

3

4

5

6

7

8

 

 

 

 

Progress made during the quarter                    Board outline of the programme for the next  quarter

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM VI

( See Rule 21 (1))

ANNUAL STATEMENT OF ACCOUNT

 

Receipts

Rs.

Payments

Rs.

 

Opening Balance

 

 

Closing Balance

 

Bank

 

Bank

 

Cash

 

Cash

 

 

Total

 

Total

 

Section – I  Khadi

 

 

Section – I  Khadi

 

Commision loans

 

Commision loans

 

1. Receipts from the Khadi Commissions

 

1. Disbursement to the institutions.

 

2. Recoveries of loans from the institutions.

 

2. Repayment of loans to khadi commission.

 

3. Recoveries of unuitilised amounts from the institutions

 

3. Refund of unspent balance to the Khadi commission.

 

 

Total

 

Total

 

Section – II Khadi

 

 

Section – II Khadi

 

Commission grants

 

Commission grants

 

 

1. Receipts from the Khadi Commission

 

 

1. Disbursement to the institutions.

 

2. Recoveries of unuitilised amounts from the institutions

 

2. Repayment of grant recoveries to the Khadi commission

 

 

 

3. Refund of unspent balance to the Khadi commission.

 

 

Total

 

Total

 

Section III State Government Loans

 

 

Section III State Government Loans

 

1. Receipts from the Government

 

1. Disbursement to the institutions.

 

2. Recoveries of loans from the institutions.

 

2. Repayment of loans to the Government.

 

3. Recoveries of unuitilised amounts from the institutions

 

3. Refund of unspent to the State Government

 

 

Total

 

Total

 

 

Section IV State Government Grants

 

 

Section IV State Government Grants

 

1. Receipts from the Government for expenditure

 

1. Organisational Expenditure

 

2. Receipt from the Government for other disbursements

 

2. disbursement to the institutions

 

3. Recoveries of unuitilised grants from the institutions

 

3. Repayment of grants recoveries to the Government

 

 

 

4. Refund of unspent balance to the Government.

 

 

Total

 

Total

 

Section V other Receipts

 

 

Section V other Payments

 

 

 

 

Grand Total

 

 

Grand Total