25. Dissolution of the Commission.—(1) 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.
(2) 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.
1. Ins. by Act 29 of 1977, s. 34 (w.e.f. 1-4-1962).
13
1
[(3) Any time after the issue of the notification under sub-section (1), 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 under clause (a) of sub-section (2) shall stand vested in the Commission so
re-established.].
26. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,
make rules to give effect to the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:—
2
[(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
travelling and daily allowances to be drawn by them when they are on tour;]
3
[(aa) the powers to be exercised and functions to be discharged by the Chief Executive Officer
under sub-section (1) of section 5;
(ab) the financial matters in respect of which the Financial Adviser shall be in charge under
section 5A;
(ac) the transaction of business at the meetings of the Board under sub-section (2) of section 10;];
(b)
4
***the procedure to be followed in removing a member who is or becomes subject to any
disqualification;
(c) 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;
5
* * * * *
6
[(dd) the constitution of the Standing Finance Committees under sub-section (1) of section 19 A;
(ddd) the procedure to be followed by the Tribunal in deciding questions referred to it under
sub-section (2) of section 19B;]
(e) the date by which, and the form in which, the budget shall be prepared and submitted in each
year under sub-section (1) of section 20;
(f) the procedure to be followed for placing the Commission in possession of funds;
(g) the procedure to be followed and the conditions to be observed in borrowing moneys or in
granting loans;
(h) the conditions subject to which, and the mode in which, contracts may be entered into by or
on behalf of the Commission;
(i) the form and manner in which the accounts of the Commission shall be maintained under
sub-section (1) of section 23;
(j) the form and manner in which the returns, reports or statements shall be submitted under
section 23; and
(k) any other matter which has to be, or may be, prescribed.
7
* * * * *
1. Ins. by Act 10 of 2006, s. 12 (w.e.f. 15-5-2006).
2. Subs. by Act 12 of 1987, s. 14, for clause (a) (w.e.f. 24-7-1987).
3. Ins. by Act 10 of 2006, s. 13 (w.e.f. 15-5-2006).
4. The words “the disqualifications for membership of the Commission and” omitted by Act 12 of 1987, s. 14 (w.e.f. 24-7-1987).
5. Omitted by s. 14, ibid. (w.e.f. 24-7-1987).
6. Ins. by Act 32 of 1961, s. 13 (w.e.f. 28-8-1961).
7. Omitted by Act 12 of 1987, s. 14 (w.e.f. 24-7-1987).
14
27. Power to make regulations.—(1) 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, for enabling it to discharge its functions under this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may
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 1
[the Chief Executive Officer] and the Financial Adviser to
the Commission, including payment of travelling 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;
2
[(ba) the transaction of business at the meetings of the Zonal Committee under sub-section (2) of
section 12A;];
3
[(bb) the summoning and holding of meetings, and the conduct of business of a Standing Finance
Committee];
(c) the delegation of powers and duties to 4
*** or any employee of the Commission;
(d) the maintenance of minutes of meetings of the Commission and of the Board and the
transmission of copies thereof to the Central Government;
(e) the persons by whom, and the manner in which, payments deposits and investments may be
made on behalf of the Commission;
(f) the custody of moneys required for the current expenditure of the Commission and investment
of moneys not so required;
(g) the maintenance of accounts; and
(h) the form in which certificates of genuineness of khadi and products of village industries may
be granted by the Commission 5
[and the fees chargeable in respect thereof.]
6
[(2A) The power to make regulations under this section with respect to the terms and conditions of
service and the scales of pay and pension to be paid to the employees of the Commission shall include the
power to give retrospective effect from a date not earlier than the commencement of this Act, to such
regulations or any of them but no retrospective effect shall be given to any such regulation so as to
prejudicially affect the interest of any person to whom such regulation may be applicable.]
(3) The Central Government may, by notification in the Official Gazette, rescind any regulation
which it has sanctioned and thereupon the regulation shall cease to have effect.
7
[28. Rules and Regulations to be laid before Parliament.—Every rule and 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 days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid, 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; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything previously done under
that rule or regulation.]