17. Payment to the Commission.—The Central Government may, after due appropriation made by
Parliament by law in this behalf, 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.
2
[17A. Commission to receive gifts, grants, etc.—The Commission may, for the purpose of
development of Khadi, 3
[the development of village industries or the development of Khadi and village
industries], receive gifts, grants, donations or benefactions from the Government or any other person.]
18. Funds of the Commission.—4
[(1) The Commission shall have stet separate funds to be called the
khadi fund, the village industries fund and the general and miscellaneous fund.
(1A) 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:
Provided that if the amount available in any of the said funds is in excess 6f the requirements of that
fund and the amount available in any other of the said funds is insufficient to meet the 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.
Explanation.—For the purpose of computing the amount in any of the said funds, the amount
received under section 17A shall not be taken into account.
(1B) The sums credited under sub-section (1),—
(a) to the khadi fund, shall be applied for the purposes relating to khadi;
(b) to the village industries fund, shall be stet for the purposes relating to village industries and
products of handicrafts;
(c) to the general and miscellaneous fund, shall be stet for the purposes relating to khadi and
village industries and for meeting the salary, allowances and other remuneration of the members,
officers and other employees of the Commission and other administrative expenses of the
Commission.]
(2) Except as otherwise directed by the Central Government, all moneys belonging to such funds shall
be deposited in the Reserve Bank of India or with the agents of the Reserve Bank of India, or, where there
is neither an office of the Reserve Bank of India nor an agent of the Reserve Bank of India, in a
Government Treasury, or be invested in such securities as may be approved by the Central Government.
19. Power of the Commission to spend.—Subject to the provisions of section 20 the Commission
shall have power to spend such sums as it thinks fit on purposes authorised by this Act:
1. The Explanation ins. by Act 10 of 2006, s. 10 (w.e.f. 15-5-2006).
2. Ins. by Act 32 of 1961, s. 9 (w.e.f. 28-8-1961).
3. Subs. by Act 12 of 1987, s. 10, for “or the development of village industries” (w.e.f. 24-7-1987).
4. Subs. by s. 11, ibid., for sub-sections (1), (1A) and (1B) (w.e.f. 1-4-1988).
11
Provided that nothing in this section shall be deemed to prevent the Commission from spending, with
the previous approval of the Central Government, such moneys, as it thinks fit on any such purpose
outside the territories to which this Act extends.
1
[19A. Standing Finance Committees.—(1) There shall be constituted from among the members
of the Commission in the prescribed manner, a Standing Finance Committee in respect of each of the
2
[three funds] referred to in section 18.
3
[Provided that the Chief Executive Officer and Financial Adviser shall be ex officio members of the
Standing Finance Committee in respect of each of the three separate funds referred to in sub-section (1) of
section 18,].
(2) The Standing Finance Committee shall exercise such of the powers of the Commission under
section 19 as are delegated to it by the Commission.
19B. Recovery of monies due to the Commission as arrears of land-revenue.—(1) Any sum
payable to the Commission under any agreement, express or implied, or otherwise howsoever, may be
recovered in the same manner as an arrear of land revenue.
(2) If any question arises whether a sum is payable to the Commission within the meaning of
sub-section (1), 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.
(3) 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.
(4) The expenses of the Tribunal shall be borne by the Commission.]
20. Budget.—(1) The Commission shall, by such date in each year as may be prescribed, prepare and
submit to the Central Government for approval 4
[three separate budgets] in the prescribed form for the
next financial year, to be called the khadi budget 5
[, the village industries budget and the general and
miscellaneous budget], showing the estimated receipts and expenditure in respect to khadi 6
[, village
industries and products of handicrafts and khadi and village industries respectively] during that financial
year.
(2) Subject to the provisions of sub-sections (3) and (4), 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.
7
[(3) 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, but subject
to the proviso to sub-section (1) of section 18, in no case shall a reappropriation of fund be made from
one budget to any of the other two budgets:
Provided that no reappropriation from the head “Loan” to any other head of expenditure and
vice versa in any of the budgets shall be sanctioned by the Commission, except with the previous
approval of the Central Government.].
(4) The Commission may, within such limits and subject to such conditions as may be prescribed,
incur expenditure in excess of the limit provided in the budget approved by the Central Government
under any head of expenditure or in connection with any particular scheme, so long as the aggregate
amount in 8
[the budget] approved by the Central Government is not exceeded.
1. Ins. by Act 32 of 1961, s. 11 (w.e.f. 28-8-1961).
2. Subs. by Act 12 of 1987, s. 12, for “two funds” (w.e.f. 1-4-1988).
3. The proviso ins. by Act 10 of 2006, s. 11 (w.e.f. 15-5-2006).
4. Subs. by Act 12 of 1987, s. 13, for “two separate budgets” (w.e.f. 1-4-1988).
5. Subs. by s. 13, ibid., for “and the village industries budget” (w.e.f. 1-4-1988).
6. Subs. by s. 13, ibid., for “and village industries respectively” (w.e.f. 1-4-1988).
7. Subs. by s. 13, ibid., for sub-section (3) (w.e.f. 1-4-1988).
8. Subs. by s. 13, ibid., for “either budget” (w.e.f. 1-4-1988).
12
21. Borrowing of money.—Subject to such rules as may be made in this behalf, the Commission
shall have power to borrow on the security of the khadi fund or the village industries fund or any other
asset for any purposes for which such funds may be applied.
22. Transfer of liabilities and obligations to the Commission.—All liabilities incurred, by all
contracts entered into with, and all matters and things engaged to be done by, or for, the Central
Government in connection with the development of khadi or village industries at any time after the 14th
day of January, 1953, and before the commencement of this Act, shall, after such commencement, be
deemed to have been incurred by, entered into with, or engaged to be done by, or for, the Commission.
23. Accounts and audit.—(1) 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.
(2) 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.
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection
with the audit of the accounts of the Commission shall have the same rights and privileges and authority
in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of
Government accounts and, in particular, shall have the right to demand the production of books, accounts,
connected vouchers and other documents and papers and to inspect any of the offices of the Commission.
(4) 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.
24. Returns and reports.—(1) The Commission shall furnish to the Central Government, at such
time and in such form and manner as may be prescribed or as the Central Government may direct, such
returns and statements and such particulars in regard to any proposed or existing programme for the
promotion and development of khadi and village industries, as the Central Government may, from time to
time, require.
(2) Without prejudice to the provisions of sub-section (1), the Commission shall, as soon as possible
after the end of each financial year submit to the Central Government a report, in such form and before
such date as may be prescribed, giving a true and full account of its activities, policy and programme
during the previous financial year.
(3) A copy of the report received under sub-section (2) shall be laid before each House of Parliament.
1
[24A. Exemption from liability to pay income-tax.—Notwithstanding anything contained in the
Income-tax Act, 1961 (43 of 1961), the Commission shall not be liable to pay any income-tax on its
income, profits or gains.]