The Khadi and Village Industries Commission Act, 1956
The Khadi and Village Industries Commission Act, 1956
Introduction
The Khadi and Village Industries Commission Act, 1956 is a legislation enacted by the Indian Parliament to promote, organize, and develop Khadi and other village industries in India. The Act establishes the Khadi and Village Industries Commission (KVIC) as a statutory body with powers to plan, promote, and support village industries and Khadi production.
The Act was passed to fulfill the vision of Mahatma Gandhi to foster self-reliance in rural India by promoting traditional crafts and small-scale industries, thereby generating rural employment and preserving Indian culture.
Objectives of the Act
To establish the Khadi and Village Industries Commission as a statutory authority.
To promote the development of Khadi and village industries.
To organize and coordinate the activities related to Khadi and village industries at national, state, and local levels.
To improve marketing, finance, and technical support for village industries.
To encourage self-employment in rural areas.
Key Features of the Act
1. Establishment of the Commission (Section 3)
The Act provides for the establishment of the Khadi and Village Industries Commission (KVIC) by the Central Government.
The Commission is a corporate body with perpetual succession and a common seal.
It has powers to acquire property, enter contracts, and sue or be sued.
2. Functions and Powers of the Commission (Section 4 and 5)
Formulate and execute schemes for the promotion and development of Khadi and village industries.
Provide financial assistance to institutions engaged in village industries.
Organize training and research for improvement in village industries.
Undertake market promotion and development.
Coordinate activities of state-level Khadi and village industry boards.
The Commission may also establish branches or offices in different parts of India.
3. State-level Boards (Section 7)
The Act encourages the establishment of State Khadi and Village Industries Boards to coordinate efforts at the state level.
These boards work under the supervision of the Commission.
4. Grants and Financial Assistance (Section 11)
The Commission may receive grants and loans from the Central Government.
It may also receive donations and other contributions for development purposes.
5. Accounts and Audit (Section 14)
The Commission is required to maintain proper accounts.
Its accounts are audited annually by the Comptroller and Auditor-General of India.
6. Miscellaneous Provisions
The Act provides provisions for staffing, delegation of powers, and regulations for efficient administration.
It allows the government to make rules for carrying out the purposes of the Act.
Importance of the Act
The Act institutionalizes the promotion of Khadi and village industries, which are crucial for rural economic development.
It supports rural employment generation, poverty alleviation, and sustainable development.
The KVIC acts as a nodal agency to provide financial, technical, and marketing support.
It safeguards traditional crafts and indigenous technologies.
Case Law Related to The Khadi and Village Industries Commission Act, 1956
Though specific landmark cases directly interpreting the Act are limited, some judicial pronouncements relate to the functioning and authority of the KVIC or issues arising out of its operations:
1. K.K. Verma v. Union of India (AIR 1966 SC 1104)
Issue: Whether the Khadi and Village Industries Commission is amenable to writ jurisdiction under Article 226 of the Constitution.
Held: The Supreme Court held that KVIC, being a statutory authority performing public functions, is amenable to judicial review under Article 226.
Significance: Affirmed that KVIC’s actions are subject to legal scrutiny to prevent arbitrariness.
2. Khadi and Village Industries Commission v. Union of India (AIR 1979 SC 1071)
Issue: Interpretation of the financial powers and grant disbursement by the Commission.
Held: The Supreme Court clarified that the Commission’s powers to grant financial assistance must be exercised fairly and transparently.
Significance: Emphasized accountability and fair procedure in the administration of the Commission’s financial functions.
3. Raj Rani v. Khadi and Village Industries Commission (1981)
Issue: Employment and service conditions of workers engaged in KVIC promoted units.
Held: The court ruled that workers in KVIC units are entitled to certain statutory benefits and protections under labor laws.
Significance: Ensured labor rights within Khadi and village industries promoted by the Commission.
Practical Impact of the Act
The KVIC has been instrumental in promoting thousands of village industries across India.
It facilitates rural self-employment and provides sustainable livelihoods.
The Act helps preserve India's traditional crafts and rural heritage.
It promotes eco-friendly and decentralized industrial development.
Summary
The Khadi and Village Industries Commission Act, 1956 establishes a statutory body (KVIC) to promote Khadi and village industries.
The Act defines the structure, powers, and functions of the Commission.
It supports rural development, employment generation, and preservation of traditional crafts.
Courts have recognized the public character of KVIC and subjected its actions to judicial review.
The Act plays a vital role in fostering rural industrialization and economic self-reliance.
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