MAIN PROVISIONS OF THE KVIC ACT-PURPOSE AND

OBJECT FOR ESTABLISHMENT OF KVIC

 KVIC is an statudory body created by an Act of
Parliament for the development and
encouragement of Khadi & Village Industries in
the Country and generation of employment
opportunities to unemployed rural mass.
 The historical background behind establishment
of the KVIC to fulfill the aspiration of Father of
the Nation Mahatma Gandhiji – establishment
of “Gram Swaraj”.
 The intention of the Legislature was to set up
the KVIC with administrative as well as
executive powers for ensuring its smooth
functioning. The same has been embodied in
the Statement of Objects and Reasons included
as appendix to the KVIC Act.
 MAIN PROVISIONS OF THE KVIC ACT
Section 4 Constitution of the Commission
The Commission shall consist of the following 13 members
appointed by the Central Government namely :-
(1) six non-official members having specialized knowledge and *not
less than ten years of experience of Khadi **or village industries and
representing such six geographical zones of the country, as may be
prescribed;
(2) four non-official members of whom each member shall be from
the following disciplines, namely :-
(i) one member having expert knowledge and experience in
Science and Technology;
(ii) one member having expert knowledge and experience in
Marketing ;
 MAIN PROVISIONS OF THE KVIC ACT
One member having expert knowledge and experience in Rural
Development ;and
(iv) one member having expert knowledge and experience in
Technical Education and Training;
(3) the Chairman of State Bank of India constituted under sub-
section (1) of Section 3 of the State Bank of India Act 1955 or
an officer not below the rank of the Deputy Managing Director as
my be nominated by the Chairman of the State Bank of India –
ex-officio
(4) a Chief Executive Officer, ex-officio; and
(5) a Financial Advisor, who shall also be the Chief Accounts
Officer of the Commission, ex-officio
Chairman of the Commission –
Central Govt. may appoint one among the Zonal members as the
Chairman of the Commission.
 MAIN PROVISIONS OF THE KVIC ACT

Section 2
Definition of Khadi :- Khadi means any cloth
woven on handlooms in India from cotton, silk
or woollen yarn handspun in India or from a
mixture of any two or all of such yarns.
Definition of Rural Area :-
“Rural Area” means the area comprised in any
village, and includes the area comprised in any
town, the population of which does not exceed
++twenty thousand or such other figure as the
Central Government may specify from time to
time”.
 MAIN PROVISIONS OF THE KVIC ACT
Section 2
Definition of Village Industry :- Village Industry means -
(i) any industry located in a rural area which produces any goods or
renders any service with or without the use of power and in which the
fixed capital investment per head of an artisan or a worker does not
exceed *one lakh rupees or such other sum as may, by notification in the
Official Gazette, be specified from time to time by the Central
Government;
Provided that any industry specified in the Schedule and located in
an area other than a rural area and recognized as a village industry at
any time before the commencement of the Khadi and Village Industries
Commission (Amendment) Act,1987 shall, notwithstanding anything
contained in the sub-clause, continue to be a village industry under this
Act;
**Provided further that in the case of any industry located in a hilly area, the
provisions of this sub-clause shall have effect as if for the words "one lakh
rupee", the words "one lakh and fifty thousand rupees" had been
substituted.
(ii) any other non-manufacturing unit established for the sole purpose of
Powers and functions of Chief Executive Officer
Section 5
(1) Subject to the supervision, direction and management of the
Commission, the Chief Executive Officer, shall exercise such powers
and discharge such functions in respect of general superintendence
over the affairs of the Commission and its day-to-day management,
as may be prescribed.
(2) The Chief Executive Officer shall in addition to exercise of
the powers and discharge of the functions referred to above, be
responsible for the furnishing of all returns, reports and statements
required to be furnished to the Central Government under section
24 of the KVIC Act.
(3) It shall be the duty of the Chief Executive Officer to place
before the Commission for its consideration and decision any matter
of financial import if the Financial Adviser suggests to him in
writing that such matter be placed before the Commission
Powers and functions of Financial Adviser
Section 5(A)
The Financial Adviser shall be in charge of such financial
matters of the Commission including its budget, accounts and
audit,as may be prescribed and it shall be the duty of the
Financial Adviser to bring to the notice of the Commission
through the Chief Executive Officer any matter of financial
import, which, in his opinion, requires consideration and decision
by the Commission.
 National Khadi and Village Industries Board
Section 10
For the purpose of assisting the Commission in the
discharge of its functions, the Central Government may,
by notification in the Official Gazette, constitute the
National Khadi and Village Industries Board consisting
of a Chairman and such number of other members as
the Central Government think fit, chosen from among
persons who, in the opinion of the Central Government,
are qualified as having had experience, and shown
capacity, in matters relating to the development of
khadi and village industries.
 Section 12A Zonal Committees
The Commission shall constitute for each of the six geographical zones
a Zonal Committee, which shall consist of the following,namely:- 
i) the non-official member representing the zone who shall be
Chairman of the Zonal Committee constituted for respective zones;
ii) one representative of each of the State Khadi and Village
Industries Boards of the States or, as the case may be, the
Government of each State in the Zone, to be notified by the Central
Government in consultation with the State Government concerned –
member ;
    iii) the Zonal Deputy Chief Executive Officer of the Commission, who
shall be the Convener of the Zonal Committee – member ;
iv)  the State Directors in charge of the Commission for the States in
the Zone-member ;
(v) a Zonal or Regional Manager of one of the lead banks operating in
the zone-member ; and
vi) one representative of an institution of repute, working for at least
ten years in the khadi or village industries sector and having good
record of performance, from each State in the zone, to be notified by
the Central Government – member .
 Term of the Commission
(1) Every member of the Commission, other than an
ex-officio member, shall hold office at the pleasure of
the Central Government which shall not exceed
continuous period of five years:
Provided that the Chairman shall notwithstanding
the expiration of his term, continue to hold office until
his successor enters upon his office.
 
 Section 15 FUNCTIONS OF THE COMMISSION
The functions of the Commission shall generally be to plan,
promote, facilitate, organize and assist in the establishment and
development of khadi and village industries in the rural areas in
coordination with other agencies engaged in rural development
wherever necessary.
In particular, and without prejudice to the generality of the
foregoing power the Commission may take such other steps as it
may think fit,
(a) to plan and organize, directly or through specified agencies,
training of persons employed or desirous of seeking employment in
khadi and village industries;
(b) to build up, directly or through specified agencies, reserves of
raw materials and implements and supply them or arrange supply of
the raw materials and implements to persons engaged or likely to be
engaged in production of handspun yarn or khadi or village industries
at such rates as the Commission may decide ;
(c) to encourage and assist in the creation of common service
facilities for the processing of raw materials or semi-finished goods
and for otherwise facilitating production and marketing of khadi or
products of village industries ;
(contd.from 8

d) to promote the sale and marketing of khadi or products of

village industries or handicrafts and for this purpose forge links
with established marketing agencies wherever necessary and
feasible;
e) to encourage and promote research in the technology used in
khadi and village industries including the use of non-conventional
energy and electric power with a view to increasing productivity,
eliminating drudgery and otherwise enhancing their competitive
capacity and to arrange for dissemination of salient results
obtained from such research;
f) to undertake directly or through other agencies studies of the
problems of khadi or village industries;
g)to provide financial assistance,directly or through specified
agencies, to institutions or persons engaged in the development
and operation of khadi or village industries and guide them
through supply of design, prototypes and other technical
information for the purpose of producing goods and services for
which there is effective demand in the opinion of the Commission;
 Contd. from page 9
h) to undertake,directly or through specified agencies,
experiments or pilot projects which in the opinion of the
Commission are necessary for the development of khadi and
village industries;
i) to establish and maintain separate organizations for the
purpose of carrying out any or all of the above matters;
j) to promote and encourage cooperative efforts among the
manufacturers of khadi or persons engaged in village
industries;
k)to ensure genuineness and to set up standards of quality
and ensure that products of khadi and village industries do
conform to the said standards, including issue of certificates
or letters of recognition to the concerned persons; and
l) to carry out any other matters incidental to the above.
Section 16 Power of the Central Govt. to give
direction
In the discharge of its functions under this Act,
the Commission shall be bound by such directions as
the Central Government may give to it.
Section 17 : Payment to the Commission
The Central Government may, after due
appropriation made by Parliament, pay to the
Commission in each financial year such sums as
may be considered necessary for the
performance of the functions of the
Commission under this Act.
Section 18 : Funds of the Commission
The Commission shall have three separate funds to be called the
khadi fund, the village industries fund and the general and
miscellaneous fund. There shall be credited,
(a)     to the khadi fund, all sums received by the Commission for
the purposes relating to khadi;(b)  to the village industries fund, all
sums received by the Commission for the purposes relating to
village industries and products of handicrafts; (c)to the general and
miscellaneous fund, all other sums received by the Commission:
 If the amount available in any of the said funds is in excess of the
requirements of that fund and the amount available in any other of
the said funds is insufficient to meet their requirements of that
fund, the Commission may, with the previous approval of the
Central Government, transfer from the first mentioned fund the
excess amount or such part thereof as may be necessary to the
other fund.
Section 19 A : Standing Finance Committee
There shall be constituted from among the
members of the Commission, a Standing Finance
Committee in respect of each of the three funds
referred to in section 18.
The Chief Executive Officer and Financial Advisor
shall be ex-officio members of the Standing Finance
Committee in respect of each of three separate funds.
     The Standing Finance Committee shall exercise
such of the powers of the Commission as are
delegated to it by the Commission.
Section 19 B : Recovery of Funds
Any sum payable to the Commission under any agreement expressed
or implied, or otherwise howsoever, may be recovered in the manner as
an arrear of land-revenue.
If any question arises whether a sum is payable to the Commission, it shall
be referred to a Tribunal constituted by the Central Government for the
purpose which shall, after making such inquiry as it may deem fit and after
giving to the person by whom the sum is alleged to be payable an
opportunity of being heard, decide the question; and the decision of the
Tribunal shall be final and shall not be called in question by any court or
other authority.
  The Tribunal shall consist of one person who is not connected with the
Commission or with the person by whom the sum is alleged to be payable.
The expenses of the Tribunal shall be borne by the Commission.
Section 20 : Budget
The Commission shall, in each year, prepare and submit to the Central
Government for approval three separate budgets in the prescribed form for
the next financial year, to be called the Khadi Budget, Village Industries
Budget and General Miscellaneous Budget showing the estimate receipts
and expenditure in respect of khadi, village industries and products of
handicrafts and khadi and village industries respectively during that
financial year.
No sum shall be expended by or on behalf of the Commission unless
the expenditure is covered by a specific provision in the budget approved
by the Central Government.   The Commission may within the respective
limits of the khadi budget, the village industries budget and the general
and miscellaneous budget, sanction any reappropriation from one head of
expenditure to another or from a provision made for one scheme to that in
respect of another.In no case reappropriation of fund shall be made from
one budget to any of the other two budgets :
Section 23 : Accounts and Audit
The Commission shall maintain proper accounts and other relevant
records and prepare an annual statement of accounts, including the profit
and loss account and the balance sheet in such form as may be
prescribed by the Central Government in consultation with the
Comptroller and Auditor-General of India.  
The accounts of the Commission shall be audited by the Comptroller and
Auditor-General of India at such intervals as may be prescribed by him.
The accounts of the Commission as certified by the Comptroller and
Auditor-General of India or any other person appointed by him in this
behalf together with the audit report thereon shall be forwarded annually
to the Central Government and that Government shall cause the same to
be laid before each House of Parliament. The accounts of the
Commission as certified by the Comptroller and Auditor-General of India
or any other person appointed by him in this behalf together with the
audit report thereon shall be forwarded annually to the Central
Government and that Government shall cause the same to be laid before
each House of Parliament..
 
Section 24 A : No liability to pay Income Tax
the Commission shall not be liable to pay any income-tax on
its income, profits or gains.
Section 25 : Dissolution of the Commission
The Central Government may, by notification in the Official Gazette, direct
that the Commission shall be dissolved from such date as may be
specified in the notification and thereupon the Commission shall be
deemed to be dissolved accordingly.
On and from the said date –(a) all properties and funds which,
immediately before the said date, were in the possession of the
Commission for the purposes of this Act shall vest in the Central
Government; and (b) all members shall vacate their office as members of
the Commission.
Any time after the dissolution of the Commission, the Central
Government may re-establish the Commission in accordance with the
provisions of section 4 and on and from the date of the re-establishment
of the Commission, the properties and funds which had previously vested
in the Central Government as referred to above shall stand vested in the
Commission so re-established.

_
Section 26. Power to make Rules
The Central Government may, by notification in the Official Gazette,
make rules in respect of the following :
 (a) the manner of filling casual vacancies among the members of the
Commission and the terms and conditions of service of the Chairman,
the Chief Executive Officer, the Financial Adviser and other members
of the Commission including the salary and allowances to be paid to
them and the traveling and daily allowances to be drawn by them
when they are on tour ;(b) the powers to be exercised and functions to
be discharged by the Chief Executive Officer;(c) the financial matters
in respect of which the Financial Adviser shall be in-charge;(d) the
transaction of business at the meetings of the Board  (e) the procedure
to be followed in removing a member who is or becomes subject to
any disqualification; (f)     the term of office and other conditions of
service of, the procedure to be followed in the discharge of functions
by, and the manner of filling casual vacancies among members of the
Board;
Section 26 .. Continued
(g) the procedure to be followed for placing the Commission in
possession of funds;(h)     the procedure to be followed and the
conditions to be observed in borrowing moneys or in granting
loans; (i) the conditions subject to which, and the mode in which,
contracts may be entered into by or on behalf of the Commission;
(j)  the form and manner in which the accounts of the Commission
shall be maintained;(k) the form and manner in which the returns,
report or statement shall be submitted (l) any other matter which
has to be, or may be, prescribed.
 
Section 27 : Power to make Regulations
The Commission may, with the previous sanction of the Central
Government, by notification in the Official Gazette, make
regulations, not inconsistent with this Act and the rules made
thereunder to provide for all or any of the following matters namely :
(     (a) the terms and conditions of appointment and service and the
scales of pay of officers and servants of the Commission, other than
the Chief Executive Officer and the Financial Adviser to the
Commission, including payment of traveling and daily allowances in
respect of journeys undertaken by such officers and servants for the
purpose of this Act ;(b) the time and place of meetings of the
Commission, the procedure to be followed in regard to transaction of
business at such meetings and the quorum necessary for the
transaction of such business at a meeting ;(c) the transaction of
business at the meetings of the zonal committee; (d)the summoning
and holding of meetings, and the conduct or business of a Standing
Finance Committee;
Section 27 Continued
((e)   the delegation of powers and duties to any employee of the
Commission; (f)     the maintenance of minutes of meetings of the
Commission and of the Board and the transmission of copies
thereof to the Central Government; (g)     the persons by whom,
and the manner in which, payments, deposits and investments may
be made on behalf of the Commission;(h)     the custody of moneys
required for the current expenditure of the Commission and
investment of moneys not so required;(i)     the maintenance of
accounts ; and (j)   the form in which certificates of genuineness of
khadi and products of village industries may be granted by the
Commission, and fees chargeable in respect thereof.
 
 
Section :28 : Rules and Regulations to be laid before
Parliament
Every rule an every regulation made under this Act shall be
laid, as soon as may be after it is made, before each House
of Parliament, while it is in session, for a total period of
thirty-day.If both Houses agree in making any modification
in the rule or regulation or both Houses agree that the rule
or regulation should not be made, the rule or regulation
shall thereafter have effect only in such modified form or be
of no effect, as the case may be.
 KVIC RULES 2006
Rule 4: Whether Members to be full time or part time :
All the Members of the Commission except the Chairman,
shall be part-time members.
Rule 7. Power to Appoint.- The Commission may appoint
officers and other employees as it considers necessary for the
efficient performance of its functionsin accordance with the
Government instructions in this regard.However, prior
approval of the Central Government is necessary regarding
creation of posts and filling of vacancies.
Rule 8. Office of the Commission.- The office of the
Commission shall be located at Mumbai or such other place
as the Government may from time to time direct.
Rule 10. Powers of the Chairman.-
(1) The Chairman shall preside over the meetings of the
Commission.
(2) The Chairman shall, - (a) cause the important papers and matters
to be presented to the Commission as early as practicable; and
(b) issue directions as to the method of carrying out the decisions
of the Commission.
Rule 11. Duties and Powers of the Chief Executive Officer in
regard to Meetings of the Commission.- (i) convening of
meetings of the Commission under the direction of the
Chairman;
(ii) drawing up agenda for each meeting under the Chairman’s
directions and supplying the same to each member of the
Commission along with the notice of the meeting; and (iii)
maintenance of the minutes of the meeting of the Commission
Rule 12. Duties and Powers of the Chief Executive Officer in
regard to Administration of the Commission.-
(1) Subject to the general superintendence, direction and
management of the Commission, the Chief Executive Officer
shall be responsible for the furnishing of all returns, reports
and statements of the Commission and discharging the duties
and exercising the powers, including the following, namely, -
(a) to co-ordinate, supervise and control the work of all
departments, establishments, officers and staff of the
Commission;
(b) to implement the decisions taken by the Commission;
 Rule 12 Contd…

(c) to administer the Contributory Provident Fund

and/or General Provident Fund of the
Commission;
(d) to sanction expenditure on contingencies,
supplies and services and purchase of articles
required for the working of the Commission and
for execution of measures in furtherance of the
objects of the Act;
(e) to examine, in consultation with the
Financial Adviser, applications for
assistance and place them before the
Commission for sanction;
Rule 12 Continued ….
(f) to conduct or cause to be conducted periodical reviews of all
schemes of the Government implemented by the Commission and of
the schemes approved by the Commission and bring to the notice of
the Government, after consideration by the Commission, the findings
of such reviews and the plan of corrective action, where necessary;
(g) to receive and place before the Commission the reports and
recommendations of the Zonal Committees, along with the
observations of the Financial Adviser and his own observations
thereon, for consideration and directions of the Commission;
(h) to prepare the Annual Report, Performance Budget, Outcome
Budget and other documents and place them before the Commission
for its consideration and further to submit them to the Government ;
and
(i) to discharge such other duties and exercise such other powers as
may be assigned to and delegated to him by the Commission.
Rules 13. Duties and Powers of the Financial Adviser.-
(1) The Financial Adviser shall be in charge of all financial matters of
the Commission, including its budget, accounts and audit and shall
discharge such other duties and exercise such other powers as may
be delegated to him by the Commission, including the following
duties and powers, namely, -
(a) to advise the Commission on all matters relating to receipts and
expenditure; and
(b) to frame the annual budget and the supplementary budget
estimates of the Commission, maintain an account of receipts and
expenditure of the Commission, prepare statements of accounts
and conduct necessary internal audit of the expenditure made out
of the funds of the Commission.
(2) The Financial Adviser shall have the duty and the right to record
his views on every proposal involving expenditure from the funds
of the Commission prior to the consideration and approval of such
Rule 13 Contd…
(3) The Financial Adviser shall also have the duty and the
authority to advise the Commission and Standing Finance
Committees that a particular decision affecting the general
financial policy of the Government should be referred to the
Government for consideration.
(4) The Financial Adviser shall maintain the account of the
receipt and expenditure of the Commission in such forms and in
such manner as the Central Government may direct from time to
time in consultation with the Comptroller and Auditor General of
India.  
 Rule 13 contd..

 (5) The Financial Adviser shall ensure placement, through

the Chief Executive Officer, of audit reports of the
Comptroller and Auditor General of India before the
Commission and follow-up action thereon and bringing to
the notice of the Commission all major audit findings
relating to operation of the schemes of the Government
implemented by the Commission or the Commission’s own
schemes, along with his recommendations on corrective
action or, as the case may be, compliance reports by the
departments concerned of the Commission.
Rule 24. Accounts of the Commission.-
The accounts of the Commission shall be maintained in such forms
and in such manner as the Central Government may direct from time
to time in consultation with the Comptroller and Auditor General of
India.
Rule : 25. Preparation of accounts and their production before
audit :- Within three months after the end of each financial year the
annual accounts showing the financial results of the Khadi Fund and
Village Industries Fund shall be prepared with such subsidiary
accounts as may be necessary and in such forms as may be prescribed
by the Government in consultation with the Comptroller and Auditor
General of India and placed before the Commission. These accounts
authenticated by affixing the common seal and duly passed by the
Commission shall be submitted to the Government and the audit
officer appointed by the Comptroller and Auditor-General, normally
by the end of October.
Rule : 27. Publication of annual accounts.- An abstract of the
statement of annual receipts and expenditure shall be published
in the Gazette of India and on the official website of the
Commission.
28. Placing the funds at the disposal of the Commission.- (1)
After the budget relating to the Commission has been approved
by the Government, and after due appropriation has been made
by Parliament by law in this behalf, the Government will place
the funds at the disposal of the Commission under the following
heads, namely,-
(a) Khadi Industries;   
(b) Khadi Industries (Science and Technology);
(c)Interest Subsidies– Khadi;       
 Rule 27 contd..
(d) Village Industries;
(e) Village Industries (Science and Technology);
(f) Interest Subsidies – Village Industries;        
(g) Rural Employment Generation Programme;
(h) Khadi Loan;       
(i) Village Industries Loan;     
(j) Scheme of Fund for Regeneration of Traditional
Industries; and  
(k) Administrative Expenses.
Rule 29 : RECOVERY OF MONIES DUE TO THE KVIC:

Notice of proposal for recovery of monies due as arrears of land

revenue.-
(i) Where any sum is payable to the Commission under any
agreement, express or implied, or otherwise howsoever, the
Commission may cause a notice to be served on the person liable
to pay the sum directing him to pay the sum stated therein.
(ii) Where the person on whom a notice is served disputes his
liability to pay the sum stated in the notice, he may, within thirty
days of the receipts of the notice make a representation to that
effect to the Commission.
(iii) If, the person on whom a notice is served neither pays the sum
stated in the notice nor makes representation to theCommission,
the Commission may request the Collector within whose
jurisdiction its office is situated to take such action as may be
Rule 29 Continued .
(iv) If in the course of proceedings taken against a person for recovery
of any sum requested to be recovered, such person denies his liability
to pay the sum or any part thereof, the authority before which such
proceedings are pending shall forthwith send a notice of such denial to
the Commission.
Rule 30. Constitution of a Tribunal
(1) On receipt of a representation from the person to whom recovery
notice is issued or a notice from the authority before which such
proceedings are pending , the Commission shall forward a copy of
such representation or the notice to the Central Government with a
request that a Tribunal may be constituted for determining the
question as to denial of liability to pay to the Commission as made in
such representation or referred to in such notice.
Rule 30 Continued :
(2) On receipt of a request the Central Government may constitute a Tribunal in
accordance with the provisions of section 19B of the Act and refer the question
mentioned in such request to the Tribunal for decision.
(3) The Tribunal so constituted shall, after making such inquiry as it may deem fit and
after giving to the person denying liability and the Commission a reasonable
opportunity of being heard and after considering such evidence as may be produced by
such person and the Commission, decide the question whether and, if so, what sum is
payable by such person to the Commission within three months from the date of
publication in the Official Gazette of the notification, notifying the constitution of the
Tribunal.
(4) A copy of the decision of the Tribunal shall be forwarded to: (a) the Commission,
where the decision of the Tribunal is in respect of a representation made by the person
to whom recovery notice has been issued, and if the decision declares any sum as
payable to the Commission, the Commission may take action for having the sum
recovered as an arrear of land revenue;
(b) the authority by which such notice was issued, where the decision of the Tribunal is
in respect of denial of liability referred to in a notice referred to above, for disposal of
the proceedings concerned in accordance with such decision.
Rule 31. Contracts.
(1) The Commission may, in connection with its trading and other
activities, enter into contracts provided provision therefor exists in the
sanctioned budget.
(2) The Commission may authorise the Chief Executive Officer, the
Financial Adviser or taking into account the recommendation of the
Chief Executive Officer in this behalf any other officer of the
Commission, such powers of entering into contracts on its behalf as it
may think fit.
(3) Contracts made on behalf of the Commission shall not be binding
on the Commission unless they are executed by a person authorised to
enter into them and the seal of the Commission is affixed thereto.
(4) Any person authorized to enter into contracts on behalf of the
Commission shall not be liable for any assurance or contract made on
its behalf: and any liabilities arising out of such assurance or contract
shall be discharged from the moneys at the disposal of the
Rule 32. Power to sanction grants and subsidies.-
1) The Commission shall disburse grants and subsidies in accordance
with and at rates and on terms sanctioned by the Government in
respect of each industry. Government may modify or supersede
the financial rates and terms previously sanctioned.
2) The Commission may reduce the rates at which grants and
subsidies are payable in individual cases to such extent, as it thinks
necessary, but shall not enhance such rates except with the prior
approval of the Government.
3) Grants and subsidies shall be paid only to: (a) a State
Government;  (b) a Board established under any law for the time
being in force for the development of khadi and village industries;
(c) a society registered under the Societies Registration Act, 1860
(21 of 1860) or under any other law for the time being in force in
any State;   (d) a Co-operative Society registered under the Co-
operative Societies Act 1912 (2 of 1912) or under any other law
for the time being in force in any State;
Rule 32 Continued
  (e) a gram or village panchayat, a panchayat samiti, a
municipality, a zilla parishad or any similar body established under
any State law for the time being in force;
  (f) an authority set up under any law for the time being in force
relating to bhoodan or gramdan;
  (g) a trust created for purposes of a charitable or religious nature;
 (h) an individual or institution engaged in research in khadi and
village industries, subject to the condition that a grant or subsidy to
an individual should not exceed Rs.50, 000 in any one case and to
an institution, it should not exceed Rs.15,00,000 in any one case.
The ceiling of Rs.50,000 for an individual and Rs.15,00,000 for an
institution may, however, be exceeded with prior approval of
Government;
 
Rule 33. Power to grant loans .- (1) The Commission shall grant loans
in accordance with the provisions of the loan rules for khadi and village
industries made by the Government from time to time, and in accordance
with and at rates and on terms sanctioned by the Government in respect
of each industry from time to time.
(2) The Commission shall not be competent to modify, amend or
otherwise vary the provision of the loan rules.
(3) The Government may, on its own initiative or on the
recommendation of the Commission, modify or amend the loan rules.
The modification or amendment will have effect from the date it is made
by the Government.
Rule 35. Power to write off losses.- (1) The Commission may, after
prior consultation with the Financial Adviser, write off losses up to
Rs.20,000 falling under category (a) and Rs. 10,000 for categories (b)
and (c) as shown below, -
Rule 35 continued
(a) irrecoverable losses of stores or of public money due to theft, fraud
or negligence;
(b) loss of revenue or irrecoverable loans and advances; and
(c) deficiencies and depreciation in the value of stores
(2) The Commission shall take suitable action against the persons
responsible for the loss and shall also send to the Government a
detailed report together with the action taken against the persons, if
any, responsible for the loss. The cases involving losses not
exceeding Rs.5, 000 shall not be reported to the Government unless
there are in any case important features which merit detailed
investigation and consideration.
Exception: Nothing contained in this rule shall apply to losses
occasioned by irrecoverable loans. Sanction of the Government shall
be obtained before such losses are written off.
Rule 35 Continued :
(3) The Commission, the Chief Executive Officer and any other officer
duly authorised by the Commission may, after prior consultation with
the Financial Adviser, write off losses up to an amount indicated below
against each falling under any or all of the categories mentioned under
sub-rule (1) above -
(a) Commission - Up to Rs. 20,000
(b) Chief Executive Officer - Up to Rs. 10,000
(c) Any other officer, not below} - Up to Rs.5,000
the rank of a Deputy Chief }
Executive Officer }
Rule 36. Custody of Common Seal.-
The Common seal of the Commission shall remain in the custody of the
Chief Executive Officer of the Commission