KHADI AND VILLAGE INDUSTREIS COMMISSION
In exercise of the powers conferred by Section 27 of the Khadi and Village Industries Commission Act, 1956 (61 of 1956), the Commission hereby makes, with the previous sanction of the Central Government, the following Regulations, namely:
These Regulations may be called the Khadi and Village Industries Commission Regulations, 1958
In these regulations, unless the context otherwise requires:
(a) “The Act” means the Khadi and Village Industries Commission act, 1956 (61 of 1956)
(aa) “Appointing authority” means an authority specified as such in the Conduct, Discipline and Appeals Regulations of the Commission.
(b) “Board” means the Board constituted under Section 10 of the Act.
© “Chairman” means the Chairman of the Commission;
(d) “Chief Executive Officer” means the Chief Executive Officer appointed by the Commission under Rule 8;
(e) “Commission” means the Khadi and Village Industries Commission, constituted under Section 4 of the Act;
(f) “Government” means the Central Government
(ff) “Head of the Office” means an Officer declared as such by the Commission;
(g) “Rules” means the rules made by the Government under section 26 of the Act;
(h) “Secretary” means the Secretary of the Commission.
The Services of all the employees of the All India Khadi and Village Industries Board, who agree to serve the Commission and to be governed by the Act and the rules and regulations made thereunder as for the time being in force will, as from the 1st April 1957, be transferred to the Commission.
The employees so transferred shall work in a temporary capacity under the Commission on the scales of pay applicable to them under the All India Khadi and Village Industries Board, until orders are issued by the Commission regarding their remuneration and other terms and conditions of service. The past services of such employees under the said Board will be taken into account for purposes of leave, increments and seniority and for purposes of any other benefits or concessions to which the Central Government servants were eligible on the 31st March, 1957, to such extent as the Commission may, with the approval of Government, lay down.
The Commission may adopt for its employees scales of pay and allowances taking into account the rates fixed by the Government of India for employees of similar categories provided that the prior sanction of the Government shall be taken in fixing scales of pay in respect of posts the maximum of the pay of which exceeds Rs.500 p.m.
The Commission will have four main classes of employees – Class I to IV- who may be further classified into grades and will issue orders prescribing duties an responsibilities of its employees from time to time.
The Commission may employ persons, wherever necessary, on fixed monthly remuneration (including allowances) or on daily wages. Prior sanction of Government in such cases shall be taken if such monthly remuneration exceeds Rs.500 p.m.*
(a) The Commission may, if it is necessary to do so in the interest of its work, appoint honorary workers on such terms and conditions as may be settled by it with the prior approval of Government.
(b) The Commission may pay to the honorary workers such honoraria as it may think fit;
Provided that the prior sanction of Government shall be taken by the Commission where the amount of the honorarium proposed by the Commission exceeds Rs.500 per month or exceeds Rs 1,000.00 in the case of any fixed honorarium.
© The Commission in consultation with its Financial Adviser may fix the grades of the honorary workers for the purpose of the determination of the traveling and daily allowances admissible to the honorary workers, after taking into consideration the social status and nature of duties which such honorary workers may be called upon to perform.
Subject to the provisions of the Act, Rules and these Regulations, the Commission shall lay down the terms and conditions of service of all its employees and honorary workers (other than the Secretary and the Financial Adviser). Inter alia these terms and conditions shall cover matters such as age limits at the time of recruitment, minimum qualifications and experience required in the case of any employees or class of employees, etc. The Commission may by order in writing relax any of these terms and conditions wherever it thinks it necessary to do so in the interest of the work of the Commission.
“Provided that nothing in this sub-regulation or any other provision made in pursuance thereof shall affect reservations and other concessions required to be provided for the Scheduled Castes, the Scheduled Tribes and other special categories of persons by the Commission, on the basis of the orders issued by the Central Government from time to time in this regard”*
In the case of permanent servants of the Central Government or any State Government whose services are lent to the Commission, the terms and conditions of service (including their pay, traveling allowance, daily allowance, leave, provident fund, leave salary, and pension contribution) shall be such as ay be laid down at the time of their deputation to the Commission.
The Commission may grant study leave to its employees in order to enable them to undertake study or research or to obtain specialized training in scientific, technical or economic subjects connected with the work of the Commission, subject to such terms and conditions as may be prescribed by the Commission.
The Commission may, with the prior approval of Government make regulations regarding:
(a) the grant of gratuity to its permanent servants;
(b) medical aid to be given to its employees from the funds of the Commission;
© the institution of contributory provident fund for the employees and
(d) conduct and discipline of its employees and appeals from orders in relation thereto.
Every employees of the Commission shall produce a medical certificate of health from such authority as ay be prescribed by the Commission from time to time. Such certificates shall be produced within one month from the date of appointment;
Provided that an employee transferred from the All India Khadi and Village Industries Board shall not be required to produce such certificate, if he has already produced it during the period of his service under that Board.
The Commission may for sufficient cause extend the period within which the medical certificate has to be produced.
The Commission may, by order in writing, waive the condition regarding the production of health certificate altogether in special cases if it deems it necessary to do so in the interest of the work of the Commission.
An employee discharged due to inability to secure the necessary medical certificate shall not be re-employed under the Commission without his producing such a certificate in advance.
A fresh certificate of health shall not be required if a discharged person is re-employed under the Commission within six months of the date of the certificate produced during the previous period of service.
All employees of the Commission recruited against permanent vacancies shall be on probation for 12 months and all such employees recruited against temporary vacancies shall be on a period of trial of six months. Such period of probation or trial may be extended by six months in individual cases by the appointing authority if he considers it necessary to do so; but in every such case, the officer issuing the order, shall within ten days of the issue of the order, inform the Chief Executive Officer of the action taken.
(a) After satisfactory completion of the trial period employees will be continued in the temporary posts.
(b) Employees recruited against permanent vacancies will be confirmed therein after satisfactory completion of probation, provided that the employees have passed the prescribed Hindi Examination.
(a) Except as otherwise provided in this sub-regulation, every employee of the Commission (other than an honorary worker or a Government Servant) shall retire on the day he attains the age of fifty-eight years.
(b) An employee of the Commission in Class IV service or post shall retire on the day he attains the age of sixty years.
© An employee of the Commission retiring on attainment of the age of fifty-eight years as provided in clause (a) may, in the interests of the Commission and for reasons to be recorded in writing:
(i) be granted extension of service; or
(ii)be re-employed in service on contract
basis on such terms and conditions as may
be decided by the Commission under a
resolution passed in that behalf.
Provided that the period of such extension of service or reemployment shall not exceed one year at a time;
Provided further than no such employee shall be granted any extension of service or re-employed in service after he attains the age of sixty years, except in very special circumstances to be recorded in writing:
(d) Notwithstanding anything contained, in clauses (a) and (b), the Commission shall, if it is of the opinion that it is in public interest to do so, have the absolute right to retire any employee by giving him notice of not less than 3 months in writing or 3 months pay and allowances in lieu of such notice;
(i) if he is in Class I or Class II service or post and had entered the services of the Commission before attaining the age of 35 years, after he has attained the age of 50 years;
(ii) in all other cases, after he has attained the age of 55 years;
Provided that nothing in this Clause shall
apply to an employee of the Commission in Class IV post who entered the service of the Commission on or before the 4th January, 1967;
(iii) any employee of the Commission may be giving notice of not less than 3 months in writing to the appointing authority, retire from service of the Commission after he has attained the age of 50 years if he is in Class I or Class II service or post and had entered the Commission’s service before attaining the age of 35 years and in all other cases after he has attained the age of 55 years;
Provided that nothing in this clause apply to an employee of the Commission in Class IV service or post who entered the services of the Commission on or before 4th January, 1967;
Provided further than it shall be open to the Commission to withhold permission to an employee under suspension who seeks to retire under this clause.”
“(iv) Guiding factors for invoking provisions of regulation 5(3)d(i) and(ii):
(1) In every case where it is proposed to retire a Commission’s employees in exercise of the powers conferred by sub-paras (i) and (ii) of regulation5(3)(d) ibid, the Commission shall record in each case its reason, that it is necessary to retire the Commission’s employee in pursuance of the aforesaid regulation in the public interest.
(2) While the review should be made on an assessment of the entire service record of an employee, no employee should ordinarily be retired on the grounds of incompetency if his service during the preceding five years, or where he has been promoted to a higher post during that 5 years period, his service in the higher post, has been found satisfactory.
(3) No employee should ordinarily be retired on grounds of incompetency, if, in any event, he would be retiring on superannuation within a period of one year from the date of consideration of his case.
(4) When representations are received against pre-mature retirements, final orders on the representations shall be passed only after obtaining the approval of the Chief Executive Officer and the Chairman.
(5) The three months’ notice referred to in regulation 5(3)(d)(i) & (ii) may be given before the Commission’s employee attains the specified age or has completed 30 years of service but the retirement should take place after the Commissin’s employee has attained the relevant age or has completed 30 years of service, as the case may be
(6) The aforesaid regulations shall not be used.
(i) to retire a Commission’s employee on grounds of specific acts of mis-conduct as a short-cut to initiating formal disciplinary proceedings; or
(ii) for reduction of surplus staff or as a measure of effecting general economy without following the rules and instructions relating to retrenchment;
(iii) on the ground that the Commission’s employee may not be suitable to continue in his officiating post or for promotion to a higher post for which he might be eligible after his attaining the age of 50/55 years, or completing 30 years’ service, as the case may be”*
(e) The Commission may, for reasons to be recorded in writing, make a fresh appointment of any person who has attained the age of fifty-eight years, for a period not exceeding one year at a time”.
During the period of trial, the services of a temporary employee may be terminated by the appointing authority or an authority superior to the appointing authority, without notice and without assigning any reason.
After satisfactory completion of the period of trial, the services of a temporary employee may be terminated without assigning any reason by notice of one month or by payment of salary of one month (with allowances) in lieu of notice.
The services of an employee appointed on probation against a permanent post may be terminated by the appointing authority or an authority superior to the appointing authority during the period of probation without notice and without assigning any reasons.
After satisfactory completion of the period of probation, the services of an employee in permanent employment may be terminated if his post is abolished.
Provided that the services of an employee in permanent service shall not be liable to termination under this regulation, so long as any post of the same grade and class or cadre and under the same appointing authority continues to be held by any person junior to him.
Provided further that such an employee may be offered an alternative appointment if vacant, suitable to his qualifications and experience and if he accepts that appointment, his services shall not be terminated.
(a) No employee in permanent service shall quit his service under the Commission without first having his resignation accepted by the competent authority.
(b) When, owing to the abolition of a permanent post, an employee in the permanent service of the Commission is discharged from the Commission’s service, he shall be entitled to three calendar months notice, signifying the Commission’s intention to terminate his appointment or, in lieu thereof, a sum equivalent to his pay for the period by which the notice actually given, falls short of the prescribed period.
Employees of the Commission shall be eligible for traveling and daily allowances for journeys on tour or on transfer at such rates and according to such condition as may be prescribed by the commission with the prior approval of the Government.
Until rates and conditions referred to in Sub-regulation (1) are prescribed by the Commission, the employees of the Commission shall draw traveling and daily allowances at rates and conditions prescribed by the Government for employees of corresponding grades.
The Commission may however, with the approval of the Central Government, vary such rates and conditions for its employees as and when necessary.
The Chairman, the Financial Adviser and the Chief Executive Officer shall be the controlling officers in respect of their own traveling and daily allowance bills.
The Chairman shall be controlling officer in respect of the traveling allowances and daily allowance bills of the Members of the Commission and the Board.
The Chief Executive Officer shall be the controlling officer in respect of the traveling allowance and daily allowance bills of the employees of the Commission and non-officials other than the Members of the Commission and the Board.
The Commission or the Chairman may, by order in writing, direct that the powers of controlling officer for the purpose of traveling and daily allowances shall be exercisable by any other officer of the Commission provided that an officer is not declared his own controlling officer.
Heads of offices will be controlling officers in respect of employees of III and IV classes.
Daily allowance shall not be drawn at full rate by any of the employees of the Commission for a continuous halt of more than 10 days at any one place while on tour.
Provided that the Chairman may, by order in writing, grant general or individual exemption from operation of this regulation if he thinks it necessary in respect of the following officers if prolonged halts are necessary in the interest of the work of the commission.
(i) the Chief Executive Officer
(ii) All Class I employees.
The power to grant general or individual
exemption from the operation of this regulation shall be exercisable by the Chief Executive Officer in respect of II, III and IV Classes.
The Commission may, with the prior approval of Government, issue order in respect f granting advances to its employees from the traveling allowance grants for journeys which are to be performed by them in connection with their official work
Leave and leave allowances of the employees of the Commission shall be regulated according to the rules and orders applicable to the employees of the Government who are in receipt of corresponding scales of pay.
Provided that the Commission, may, with the prior approval of Government, either frame fresh rules on the subject or make necessary changes in the rules and order aforesaid.
Ordinarily promotions shall be made strictly on the basis of seniority, provided the senior most person is also suitable on the basis of merit. The Commission may treat any post or class of posts as selection posts or post to which this rule will not apply. Promotion to selection posts shall be made on the basis of merit only.
Notwithstanding anything contained in sub-regulation (1) but subject to the proviso to sub-section (2) of section 14 of the Act it shall be open to the Commission in respect of its Class I employees and to the Chief Executive Officer in respect of employees of Class II, III and IV and honorary workers drawing less than Rs.500 p.m.to make appointment in special cases otherwise than in accordance with sub-regulation (1), provided that in every such case, an order shall be passed in writing, recording the reasons for making such appointment.
The Commission may authorize the Chief Executive Officer to exercise full powers in granting higher initial salary or sanction advance increments subsequently, in all cases in which he is competent to create the post provided that in cases where more than three advance increments are involved, the concurrence of the Financial Adviser shall be obtained.
The Commission may, with the prior sanction of Government depute any member of the Commission or the Board or any of its employees to proceed outside India in connection with its work. The Commission may issue orders, with the prior approval of the Government regarding the grant of funds to persons deputed outside India.
The Commission may appoint committees or sub-committees consisting of one or more of its embers or of her persons or of both, for specific purposes to assist or advise the Commission in complying with any of the provisions of the Act.
The Commission may, out of its funds, provide facilities such as canteens, recreation clubs, lunch rooms and ladies rooms, for its employees. The Commission may include the necessary provision in this behalf in its annual budget.
The Chairman shall decide the date, time and place of every meeting of the commission and this will be communicated by the Secretary to other members of the Commission, the Financial Adviser and the officers of the Government nominated for attending the meeting of the Commission. A list of business to be transacted will also be supplied to the members and other persons aforesaid by the Secretary in advance. Business other than that shown in the list can, however, be transacted with the permission of the Chairman.
The Chairman shall ordinarily preside at all the meetings. In his absence the members present shall elect one of the members other than the Secretary to preside at the meeting.
Three members of the Commission shall form a quorum for meeting of the Commission.
If at any meeting of the Commission there is no quorum, the Chairman or any other person presiding at such a meeting shall adjourn the meeting to another date and it shall thereupon be lawful to dispose of the business at such an adjourned meeting irrespective of the number of members attending at the adjourned meeting.
Provided that the adjourned meeting is fixed for a date not less than 7 days later and that all the members are informed of the date, time and place of such adjourned meeting.
All votes shall be taken by voice or by show of hands unless the Chairman of the meeting decides that votes shall be taken by ballot in particular cases.
Proceedings of meetings of the Commission and of the Board shall be recorded under the general supervision and control of the Secretary.
Minutes of the meetings of the Commission and of Board shall be compiled by the Secretary and shall be placed before the next meeting of the Commission of the Board, as the case may be, for confirmation. The minutes of the meeting shall inter alia show the names of the persons who attended such meeting and the decisions taken there at. The Chairman of the meeting shall sign the minutes, after they are confirmed. Copies of the minutes shall be forwarded to Government by the Secretary, after each meeting.
Summoning and holding of meeting and the conduct of business of a Standing Finance Committee.
The date, time and place of every meeting of a Standing Finance Committee fixed by its Chairman shall be communicated by the Secretary to the Committee to all members of the Committee, the Financial Adviser and the Chief Executive Officer together with a list of business to be transacted at the meeting and no business which is not shown in the list, may be transacted except with the permission of the Chairman of the Committee.
Two members of a Standing Finance Committee shall form a quorum for a meeting except at an adjourned meeting for which no quorum shall be necessary; if at any meeting, there is no quorum, the Chairman or the person presiding at such meeting shall adjourn the meeting and fix any other time on the same or another day for the adjourned meeting.
The proceedings of the meetings of a Standing Finance Committee shall be recorded by the Secretary to the Committee who shall also compile the minutes of each meeting and get them approved by the members present at that meeting. Copies of the minutes thus approved shall be placed before the Commission for information.
The Chief Executive Officer shall work under the control of the Chairman or under the directions of the Secretary where he exercises such powers and performs such duties as may have been delegated to him by the Central Government or by the Chairman. He will be entitled to attend all meetings of the Commission, the Standing Finance Committees and the Board. His powers and duties will be:
(i) to coordinate, supervise and control the work of officers and establishments of the Commission;
(ii) to implement the decisions taken by the Commission;
(iii) to frame annual budget estimate and supplementary budget estimates under the directions of the Secretary and in consultation with the Financial Adviser, who will scrutinize and exercise such supervision over the preparation as he considers necessary before the budget is placed before the Commission.
(iv) to administer the Contributory Provident Fund of the Commission, when established;
(v) to sanction contingent expenditure, to the extent of powers delegated to him by the Commission, from time to time;
(vi) to examine application for assistance (both grants and loans) and place them before the Commission for sanctions;
(vii) to undertake such other duties and exercise such other powers as may be assigned to him by the Commission or the Chairman.
All payments other than payments relating to salaries, wages and allowances by or on behalf of the Commission shall be made by cheques drawn against the current accounts of the Commission; payment in respect of individual claims not exceeding Rs. 200 may however be made in cash.
All cheques drawn against the current account of the commission (i.e. ‘Khadi Fund’ and ‘Village Industries Fund’ account and all orders for making investment or for the withdrawal of the same or for the disposal in any other manner of the funds of the Commission shall:
(a) when the value of the cheque drawn does not exceed Rs.1,00,000 (Rupees one lakh only) be signed by the Chief Accounts Officer or any one of the Accounts Officers nominated by the Commission by a resolution passed in this behalf.
(b) When the value of the cheque exceeds Rs.1,00,000 (Rupees one lakh only) be signed jointly by the Chief Executive Officer or the Deputy Chief Executive Officer or the Additional Deputy Chief Executive Officer or any one of the officers not below the rank of a Director(other than the Director of Inspection) nominated by the Commission by a resolution passed in this behalf and the Chief Accounts Officer or any other Accounts Officer, nominated by the Commission by a resolution passed in this behalf.
Placing of moneys belonging to the Commission is fixed deposits and their investment or disposal in any other manner shall require approval of the Commission.
The Commission shall maintain bank accounts under two heads (Khadi Fund Account and Village Industries Fund Account) in the Reserve Bank of India or with the agents o the Reserve Bank of India or with the State Bank of India and its branches or where there is neither an office of the Reserve Bank of India nor an agent of the Reserve Bank of India nor an office of the State Bank of India or its branches in any Scheduled Bank approved by the Government. All moneys of the Commission with the exception of petty cash of funds kept at deposit in accordance with these regulations shall be paid into the respective fund account.
The Commission may authorize any of the officers of the Commission to maintain a separate current account in the State Bank of India for depositing funds placed at its disposal in connection with the work of the Commission.
Prior sanction of Government shall be taken, if a current account for depositing the funds of the Commission has to be maintained by the Commission or by an officer authorized by it, in any scheduled bank other than the State Bank of India.
The petty cash, required for meeting current expenditure shall be in the custody of the Chief Executive Officer or an officer nominated by him in writing in this behalf. The Commission may decide the amount of the petty cash thus maintained from time to time.
The Commission may advance as imprest small amounts of money not exceeding Rs.1,000 in any one case to any of the officers for incurring petty expenditure within the powers delegated to them. The offices to whom such amounts are advanced shall be personally responsible for them and they shall also be responsible for maintaining proper account, in the form prescribed by the Commission.
The Chief Executive Officer shall maintain or cause to be maintained an account of receipts and expenditure of the Commission, in the form prescribed by the Government.
He shall be responsible for ensuring that no expenditure is made from the funds of the Commission unless provisions for such expenditure has been made in the budget and funds are available for incurring the expenditure.
He shall also prepare or cause to be prepared such statements of accounts and records and subsidiary accounts as may be required by the Government or by the Commission, from time to time.
He shall, in consultation with the Financial Adviser, conduct necessary internal audit of the expenditure made out of the funds of the Commission in order to ensure that the expenditure is incurred strictly according to rules and regulations under the Act and in accordance with the orders and instructions issued by the Commission and other competent authorities from time to time.
The Commission may delegate necessary financial powers to its officers for ensuring expeditious disposal of work and smooth and efficient functioning of the organization. The Commission may make suitable rules in this behalf for the guidance of its staff in order to ensure that these powers are judiciously used by the officers concerned.
The Commission shall appoint one or more Certification Committees which shall grant certificates to producers of or dealers in, khadi or the products of any village industry, in accordance with such instructions as the Commission may issue from time to time. Every such certificate in the case of khadi shall be in the form annexed. Forms for village industries products will be prescribed from time to time with prior approval of Government.
A Certification Committee shall consist of such number of members as the Commission may think fit to appoint thereto, and one of them shall be appointed as the Chairman of the Committee.
A Certification Committee shall levy fees for issue of certificates at rates that may be approved by the Commission from time to time in consultation with its Financial Adviser.
The Commission may seek advice of non-members or employees of the Central Government or State Governments in regard to specific problems or may request them to attend certain meetings of the Commission, the Board of Committees appointed by the Commission for having the benefit of their experience. The Commission shall pay traveling and daily allowances to such non-official persons at the rates and according to such conditions as may be prescribed by the Commission with the prior approval of the Government. Until such rates and conditions are prescribed by the Commission, the non-official persons shall draw traveling and daily allowances at the rates and conditions prescribed by the Government for its employees of corresponding grades.
The traveling and daily allowances of the officials would be governed by the rules applicable to them as such officials.
Dated: 5 Septemeber, 1958
14 Bhadra 1880 (S)
Chief Executive Officer
Joint Secretary toi the Government of India