CENTRAL SILK BOARD ACT, 1948

An act to provide for the development, under Central control, of the silk industry and for that purpose to establish a Central Silk Board.
WHEREAS it is expedient to provide for the development under Central control, of the silk industry and for that purpose to establish a Central Silk Board ;
It is hereby enacted as follows:

1. Short title and extent :---
  1. This Act may be called the Central Silk Board (Amendment) Act, 1970.*
  2. It extents to the whole of India.*

2. Declaration as to expediency of Union Control:-
It is hereby declared that it is expedient, in the public interest that the Union should take under its control the silk industry.

3. Definitions:
In this Act unless there is anything repugnant in the subject or context :-
  (a) "Board" means the Central Silk Board constituted under this Act ;
  (b) "Charkha raw silk silk" means raw silk reeled from silkworm cocoons with the help of any instrument not worked by power ;
  (c) "filature raw silk" means raw silk reeled from silkworm cocoons with the help of any instrument worked by power :
  (d) "Power" means any form of energy which is mechanically transmitted and is not generated by human or animal agency, and includes electrical energy ;
  (e) "Prescribed" means prescribed by rules made under this Act ;
  (f) "spun silk" means silk yarn spun from pierced or spoilt cocoons, fluff from cocoons, pieces of silknoils or other silkwaste:
  (g) " Standing Committee" means the Standing Committee of the Board constituted under sub-section (2) of Section .

4. Constitution of the Board:-
  (1). As soon as may be after the commencement of this Act the Central Government shall, by notification in the official Gazette, constitute for the purposes of this Act a Board to be called the Central Silk Board.
  (2) The Board shall be a bodycorporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name sue and be sued.
  (3). The Board shall consist of the following members, namely:-
    a). A Chairman to be appointed by the Central Government;
    b). Not more than three officials to be nominated by the Central Government; Provided that it shall be lawful for any such official to depute, in the prescribed circumstances, an other official to attend any meeting of the Board on his behalf;
    c). Six persons to be elected by Parliament, four from the House of the People by the members of the House of the People and two from the Council of States by the members of the Council of States;
    d). Five persons to be nominated by the Government of Karnataka, one of whom shall represent the filature silk industry and two shall represent the rest of the sericulture industry
    e). One person to be nominated by the Government of Tamil Nadu ;
    f). two persons to be nominated by the Government of West Bengal;
    g).one person to be nominated by each of the Governments of Assam, Bihar, Gujarat, Madhya Pradesh, Andhra Pradesh and Uttar Pradesh;
    h). one person to be nominated by the Government of Jammu and Kashmir ;
    i). not more than three persons to be nominated by the Central Government to represent the producers of raw silk and areas other than the States specified in clauses (d) to (g) inclusive;
    j). eight persons to be nominated by the Central Government, of whom one shall represent the spun silk industry, one the silk throwing and twisting industry, one the silk weaving industry, one labour and two of them shall be experts in sericulture.
  (4). The members of the Board shall receive from its funds such travelling and other allowances as may be prescribed.
  (5). Subject to the other provisions of this Act, the term of office of a member shall be such period, not exceeding three years as may be prescribed.*
  (6). Notwithstanding anything contained in sub-section (5) :-
    a). the Central Government may terminate the appointment of the Chairman after giving him notice for a period of not less than three months ;
    b). the Chairman may resign his office by giving notice in writing for a period of not less than three months to the Central Government, and on such resignation, being notified in the official Gazettee by that Government, the Chairman shall be deemed to have vacated his office.*

5. Power of the Central Government in default of nominations:-
(1) If any Government other than the Central Government fails to make any nomination which it is entitled to make under sub-section (3) of Section 4 within the time prescribed in that behalf, the Central Government may make the nomination itself.
  (2) Where a member of the Board dies, resigns, is removed, ceases to reside in India, or becomes incapable of acting, the authority or body entitled to nominate the member under Sub-section (3) of Section 4 may nominate a person to fill the vacancy:; and where such nomination is not made within the time prescribed in that behalf, the Central Government, on its own initiative, may make the nomination itself.
(3). No act done by the Board shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution, of the Board.

6 Vice-Chairman and Standing Committee:-
(1) The Central Government shall appoint from among the members of the Board a Vice-Chairman who shall exercise such of the powers and perform such of the duties of the Chairman as may be prescribed or as may be delegated to him by the Chairman.
  2. The Board may in its discretion, constitute, a Standing Committee for the purpose of exercising such of its powers and performing such of its duties as may be delegated by it, not being powers or duties the delegation of which is prohibited by rules made under this Act.
  3. The Standing Committee shall consist of the Chairman, and five others elected by the Board from among its members.

7. Secretary of the Board:-
The Central Government shall appoint a Secretary to the Board who shall, under the control and direction of the Board, exercise such powers and perform such duties as may be prescribed or as may be delegated to him by the Board or the Chairman.

8. Functions of the Board:-
(1) It shall be the duty of the Board to promote the development of the silk industry by such measures as it thinks fit.
  (2). Without prejudice to the generality of the foregoing provision, the measures referred to therein may provide for -
    a). undertaking, assisting or encouraging scientific, technological and economic research;
    b). devising means for improved methods of mulberry cultivation, rearing, developing and distributing healthy silkworm seeds, reeling or, as the case may be, spinning of silkworm cocoons and silkwaste, improving the quality and production of raw silk, if necessary, by making it compulsory for all raw silk to be marketed only after the same has been tested and graded in properly equipped raw silk conditioning houses;*
    c). improving the marketing of raw silk;*
    d). the collection of statistics from such persons as may be prescribed:*
    e). carrying out any other duties which may be vested in the Board under rules made under this Act.*
  (3). It shall be the duty of the Board -
    a). to advise the Central Government on all matters relating to the development of the raw silk industry, including the import and export of raw silk ;
    b). to prepare and furnish such other reports relating to the silk industry as may be required by the Central Government from time to time.*

9. Funds of the Board: -
(1) The Central Government shall, from time to time, make grants to the Board of such sums as the Central Government may consider necessary for enabling the Board to exercise its powers and discharge its duties under this Act.
  (2) The funds of the Board shall be kept in such banks, or invested in such manner, as may be prescribed, and shall be expended by the Board only in the performance of its functions under this Act or for meeting such expenses as are authorised by this Act or by rules made thereunder.

10.Imposition of cess on certain kinds of silk:-
(1) With effect from such date as the Central Government may, by notification in the official Gazette appoint, there shall be levied and collected as a cess for the purposes of this Act a duty of excise on all filature raw silk, and on all spun silk, reeled in the territories to which this Act for the time being extends at such rate as the Central Government may, by notification in the official Gazettee, from time to time, fix.
  2. The said duty of excise shall be payable by the reelers of filature raw silk or spun silk and shall be paid by them to the Board within one month from the date of the receipt of the notice of demand from the Board in that behalf.
  3. The said duty of excise may be recovered as if it were an arrear of land revenue.
  4. For the purpose of enabling the Board to assess the amount of the duty of excise payable under this section by the reelers of filature raw silk or spun silk.
    a. the Board shall, by notification in the official Gazette, fix the period in respect of which assessments shall be made, and
    b. every reeler of filature raw silk or spun silk shall furnish to the Board, within the prescribed time, a return specifying the total amount of filature raw silk or spun silk reeled during such period.
5. If any reeler of filature raw silk or spun silk fails to furnish such return within the prescribed time or furnishes a return which the Board has reason to believe to be incorrect or defective, the Board may assess the amount payable by such reeler in such manner as may be prescribed.
6. Any reeler feeling himself aggrieved by an assessment made under this section may, within three months of the receipt of the notice under sub-section (2), apply to the District Judge or such other civil judicial officer as may be prescribed, for the cancellation or modification of the assessment, and such District Judge or judicial officer shall, after giving the Board an opportunity of being heard, pass such orders as he thinks proper; and such order shall be final.
  7. The proceeds of the duties of excise paid to the Board shall first be credited to the Consolidated Fund of India and the Central Government may thereafter, from time to time, pay to the Board from and out of such proceeds such sums of money as it may think fit.

11. Control by the Central Government:-
  (1) All acts of the Board shall be subject to the control of the Central Government which may cancel, suspend or modify as it thinks fit any action taken, or order passed, by the Board.
  2. The record of the Board shall be open to inspection at all reasonable times by any officer authorised in this behalf by the Central Government

12. Accounts of the Board:-
(1) the Board shall keep such accounts, and in such manner and form, as may be prescribed, in respect of all moneys received and expended by it.
  (2) The accounts of the Board shall be audited by The Comptroller & Auditor General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller & Auditor General.*
  3. The Comptroller and Auditor General of India and any person appointed by him in connection with audit of the accounts of the Board shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor General of India 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 Board.*
  4. The accounts of the Board as certified by the Comptroller and Auditor General of India or any 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 a copy of the same to be laid before each House of Parliament.*
  5. A copy of the accounts of the Board as so certified together with the audit report thereon shall be forwarded simultaneously to the Board.*

12A. The Board shall prepare for every financial year a report of its activities and achievements during that year and submit the report to the Central Government in such form and on or before such date as may be prescribed, and that Government shall cause a copy of the report to be laid before each House of Parliament.*

13. Power of Central Government to make rules:-
(1) The Central Government may, by notification in the official Gazette make rules to carry out the purposes of this Act.

  2. In particular, and without prejudice to the generality of the foregoing power, rules made under this section may provide for all or any of the following matters, namely:-
    i. the term of office of members of the Board, the circumstances in which and the authority by which members may be removed and the filling of causal vacancies in the Board.
    ii. the procedure to be followed at the meetings of the Board and at the Standing Committee for the conduct of business and the numbers of members which shall form a quorum at any meeting:
    iii. the maintenance by the Board of records of business transacted by the Board and the submission of copies thereof to the Central Government;
    iv. the holding of a minimum number of meetings every year;
    v. the power of the Board, its Chairman and Standing Committee with respect to the incurring of expenditure;
    vi. the conditions subject to which the Board may incur expenditure outside India;
    vii. the preparation of budget estimates of receipts and expenditure of the Board and the authority by which the estimates are to be sanctioned ;
    viii. the maintenance of the accounts of income and expenditure of the Board, the form of the annual report of the Board and the date on or before which it shall be submitted to the Central Government;
    ix. The deposit of the funds of the Board in Bank and the investment of such funds;
    x. the re-appropriation of estimated savings from one budget head to any other budget head;
    xi. the conditions subject to which the Board may borrow funds;
    xii. the conditions subject to which and the manner in which contracts may be entered into by or on behalf of the Board.
    xiii. the delegation to the Standing Committee or the Chairman or the Vice-Chairman or members or officers of the Board of any of the powers and duties of the Board under this Act;
    xiv. the staff which may be employed by the Board and the pay and allowances, leave and other conditions of service of officers and other employees of the Board;
    xv. the travelling and other allowances of members of the Board and of the Standing Committee;
    xvi. the purposes for which funds of the Board may be expended;
    xvii. the maintenance of the registers, atnd other records of the Board and of its Standing Committee;
    xviii. the collection of any information or statistics in respect of raw silk or any product of silk;
    xix. the manner in which raw silk shall be graded and marketed;
    xx. any other matter which is to be or may be prescribed.
   3. Every rule made under this section 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 both Houses agree that the rule should not be made, the rule 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.*

13A. Penalties: -
(1) If any person -
    a. in any return to be furnished under this Act makes any statement which is false and which he knows to be false or does not believe to be true, or
    b. obstructs any officer of the Board in the exercise of any power conferred, or the discharge of any duty imposed, on him by or under this Act, or
    c. having the control or custody of any account book or other record fails to produce such book or record when required to do so under this Act.
He shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, or with both.
  2. if the person committing any offence specified in sub-section (1) is a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly; Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
  3. Notwithstanding anything contained in sub-section (2) where an offence under sub-section (1) has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

14. Explanation: For the purposes of this section ----
    a. "Company " means any body corporate and includes a firm or other association of individuals and
    b. "director" in relation to a firm means a partner in the firm.

15. Prosecution to be with the consent of Central Government :-
No prosecution for any offence punishable under this Act shall be instituted except by or with the consent of, the Central Government.

15A. Jurisdiction of courts :-
No court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence punishable under Section 14.

16. Bar of legal proceedings :-
No suit, prosecution or other legal proceedings shall lie against the Board, or any member or officer of the Board, for anything in good faith done or intended to be done under this Act.

GOVERNMENT OF INDIA
CENTRAL SILK BOARD RULES
MINSITRY OF COMMERCE AND INDUSTRY
NOTIFICATION

New Delhi, the 23rd March 1955S.R.O. 662 -
In exercise of the powers conferred by Section13 of the Central Silk Board Act, 1948 (LXI of 1948) and in supersession of the rules published under the Notification of the Government of India, in the late Ministry of Industry and Supply, No.26 (18)-Tex (2)/49, dated the 8th June 1949, the Central Government hereby makes the following rules :-

1. Short title:-
These rules may be called the Central Silk Board Rules, 1955.

2. Definitions:
In these rules, unless there is anything repugnant in the subject or context ,
  a. "Act" means the Central Silk Board Act, 1948 (LXI of 1948), as amended by the Central Silk Board (Amendment) Act, 1953 (XXXI of 1953);
  b. "Chairman" means the Chairman of the Board;
  c. "Vice Chairman" means the Vice-Chairman appointed by the Central Government under Section 6(1) of the Act;
  d. "Secretary" means the officer appointed by the Central Government under Section 7of the Act;
  e. "Form" means a form appended to these rules.

3. Filling in casual vacancy of a nominated member :--
(1) When a vacancy arises in the Board in any of the modes described in Section 5(2) of the Act in respect of a member nominated by the Central Government or a State Government, the Secretary shall write to the Government entitled to nominate the member inviting a fresh nomination to be made within a period of two months from the date of posting of such invitation by registered post.
  1. Where any Government, other than the Central Government, fails to make a nomination, which is entitled to make under sub section (3) of Section 4 of the Act within two months from the date of posting of the letter inviting such a nomination, the Central Government may itself make the nomination in exercise of the powers conferred under Section 5(1) of the Act.

4. Filling in casual vacancy of an elected member : --
When a member of the Board elected by Parliament dies, resigns, is removed, ceases to reside in India or becomes incapable of acting, the Secretary shall notify the vacancy to the Secretary of the Rajya Sabha or the Secretary of the Lok Sabha, according as the member was elected by the former or the latter House of Parliament, with a request that a fresh elelction may be held as early as may be possible and the name of the elected member communicated to the Secretariat of the Board.

5. Term of office of members: (1) Except as provided in sub-rule (2) of rule 8 every member of the Board shall hold office for a period of three years from the date of his appointment, nomination or election as the member of the Board under Section 4(3) of the Act . Provided that the term of office of the members of the Board holding office immediately before the commencement of these rules, shall terminate on the 8thday of April, 1955.
  2. A person nominated to fill in a casual vacancy under sub-section (2) of Section 5 of the Act or who is elected under rule 4 shall hold office for so long only as the member whose place he fills would have been entitled to hold office if the vacancy had not occurred.

6. Deputation on behalf of Central Government official nominated member :-- An official nominated by the Central Government under Section 4(3) (b) of the Act may depute any other official not below the rank of a Gazetted officer connected with the work to attend any meetings of the Board or its Committees or Sub-Committees on his behalf in case of illness or exigency of official work and in relation to that meeting such deputed official shall have all the rights and privileges of a Member.*

7. Resignation by member of the Board or the Standing Committee :-
(1) A member of the Board may resign his office by writing under his hand addressed to the Chairman.
  2. A member of the Standing Committee may resign his office as such member of the Standing Committee by writing under his hand addressed to the Secretary.

8. Termination of membership before the expiry of the term:-
(1) When a person is appointed or nominated as a member of the Board by virtue of an office held by him, his membership of the Board shall terminate when he ceases to hold that office and the vacancy so caused shall be deemed to have been filled by his successor to that office.
  2. A member of the Board elected under clause (c) of sub-section (3) of Section 4 by either House of Parliament shall cease to be a member of the Board if he ceases to be a member of the House by which he was elected.

9. Register of members: -
(1) The Board shall maintain a Register in which the name and address of each member of the Board shall be entered.
  2. If a member of the Board changes his address, he shall notify his new address to the Secretary and the Secretary shall amend the relevant entry in the Register accordingly.

10. Member going out of India :-
  (1) Before a member of the Board leaves India he shall inform the Chairman of the Board and intimate to him the date of his departure and the date of his expected return to India.
  (2) If he intends to be or is actually absent from India for a period longer than six months, he shall tender his resignation.*
  3. If a member is continuously absent from India for a period longer than six months and has not resigned, the Chairman shall inform the Central Government immediately to that effect and the Central Government may remove such member from membership of the Board.*

11. Member absenting himself from two consecutive meetings of the Board:-
Any member, who without the permission of the Chairman, absents himself from two consecutive meetings of the Board will be liable to be removed from membership of the Board by the Central Government.

12. Removal of members: The Central Government shall remove a member from the Board -
  a. If he is an undischarged insolvent:; or
  b. If he is convicted of any offence involving moral turpitude.

13. Election of members of the Standing Committee:-
(1) The Chairman or in his absence the Vice-Chairman or in the absence of both, the member presiding, shall, at a meeting of the Board at which it is proposed to elect members of the Standing Committee under Section 6(2) of the Act, invite the members present to propose and second candidates from among the members of the Board for election to the Standing Committee. A member whose name has been proposed by a member of the Board and duly seconded by another member will be a candidate for election to the Standing Committee provided that he has given his consent orally or in writing.
  2. If the number of candidates is less than or equal to the number of vacancies to be filled in all the candidates shall be declared elected to the Standing Committee.
  3 If the number of candidates exceeds the number of vacancies to be filled in, each member of the Board present at the meeting shall be given a ballot paper containing the names of all the candidates and he shall be required to cast his votes thereon in such manner as may be determined by the Board for as many candidates as there are vacancies to be filled in. Not more than one vote shall be given in favour of any one candidate. If any member votes for more candidates than there are vacancies or gives more than one vote in favour of any one candidate, all his votes shall be deemed to be invalid.
  4. The candidates getting the highest number of votes shall be declared at the meeting, or as soon thereafter as possible, as elected to the Standing Committee.
  5. In the case of an equal division of votes, the Chairman or in his absence the Vice-Chairman or in the absence of both the member presiding over the meeting, shall have a second or casting vote.
  6. If any question shall arise as to the validity of any election, it shall be referred to the Chairman whose decision in the matter shall be final.
  7. A member of the Standing Committee shall be a member thereof for one year or for so long he is a member of the Board, whichever period is less, but shall be eligible for re-election.
  8. In the event of a vacancy arising in the Standing Committee soon after the Annual General Meeting of the Central Silk Board in any year the Chairman may, at his discretion, request the members of the Board by post to propose candidates from among the members of the Board to fill up the vacancy.

14. Maintenance of office:-
The Board shall maintain an office for the transaction of its business and may open branch offices, should necessity arise.

15. Records of business:-
A record shall be maintained of all business transacted by the Board or by the Standing Committee.

16. Meetings of the Board and the Standing Committee:-
Not less than one meeting of the Board and not less than two meetings of the Standing Committee shall be held in each financial year.

17. Notice of meetings and list of business:-
(1) The Secretary shall decide, in consultation with the Chairman or the Vice-Chairman, the date, time and place of every meeting of the Board or of the Standing Committee. A notice of not less than 21 days from the date of posting shall ordinarily be given to every member for a meeting of the Board. A notice of not less than 10 days from the date of posting shall ordinarily be given to every member for a meeting of the Standing Committee. Such notice shall be sent to every member by registered post. A list of business proposed to be transacted shall accompany the notice. If it is necessary to convene an emergency meeting of the Board or of the Standing Committee, at least one week's notice shall be given to each member of the Board or the Standing Committee, as the case may be.
  2. No business other than that for which a meeting is convened shall be considered at the meeting except with the permission of the Chairman or in his absence the Vice-Chairman or in the absence of both the member presiding over the meeting.

18. Provision for presiding over meetings:-
The Chairman or, in his absence, the Vice-Chairman shall preside over the meetings of the Board or the Standing Committee. In the absence of both, the members present shall elect one amongst themselves to preside.

19. Quorum for meetings:-
(1) Twelve members shall form the quorum for meetings of the Board and three members shall form the quorum for meetings of the Standing Committee.
  2. If at any meeting there is not sufficient number of members present to form the quorum, the Chairman or in his absence the Vice-Chairman or in the absence of both the members presiding may adjourn the meeting to a date not later than 7 days from the date of the adjourned meeting and it shall thereupon be lawful to dispose of the business, at such an adjourned meeting irrespective of the number of members attending.

20. Disposal of business:-
(1) Every question, which may come up before the Board or the Standing Committee at any meeting, shall be decided by a majority of votes of the members present and voting on that question. No member shall vote by proxy.
  2. In the case of an equal division of votes, the Chairman or in his absence, the Vice-Chairman or in the absence of both the member presiding shall have a second or casting vote.

21. Proceedings of the meetings:-
(1) The minutes of the meetings of the Board or of the Standing Committee shall be kept in separate books (hereinafter referred to as Minutes Book), and shall be signed by the Chairman or the Vice-Chairman or the member who presided at the meeting. Copies of such minutes showing, inter-alia, the names of the members present at the meeting shall be forwarded to each member of the Board and to the Central Government as soon as possible after every meeting.
  2. The minutes of each meeting shall be placed before the next meeting for confirmation.

22. Powers of the Board:-
(1) The Board may, by a resolution, sanction any expenditure or authorise making of a contract involving expenditure from the funds placed at its disposal by the Central Government in performance of its functions under the Act; Provided that the Board shall not sanction any expenditure or authorise making of a contract involving expenditure in excess of the budget allotment; Provided further that the Board shall not enter into any contract involving an expenditure in excess of Rs. One lakh and/or extending over a period of more than three years without prior sanction of the Central Government.*
  1.(A) The Board may, by resolution, appoint any person or persons for such period and on such terms and conditions as it may think fit, for the purpose of collecting information or statistics or otherwise assisting the Board in carrying out its duties and functions under the Act or these rules.
  1. (B) The Board may , by order, require any person engaged in the production, supply and distribution of, or trade and commerce in silk cocoon, raw silk, silkwaste, or any product of silk (i.e., yarn, sewing thread, silk woven materials, silk hosiery and garments made from silk fabrics; to maintain and produce for inspection such books, accounts and records relating to their business and to furnish such information relating thereto, as may be specified therein.
  2. The Board may incur expenditure outside India upto a maximum of Rs.5,000/- on each individual item; Provided that this power of the Board shall not be delegated to the Standing Committee. Or the Chairman, or the Vice-Chairman, or any member of the Board nominated under Clause (b) of sub-section (3) of Section 4 of the Act.
  3. Except as provided in the proviso to sub-rule (2) above the Board may delegate such powers as it may deem fit to the Chairman, Vice-Chairman and members of the Board nominated under clause (b) of sub-section (3) of the section 4 of the Act or the Standing Committee.*

23. Powers of the Chairman:-
(1) The Chairman may sanction an expenditure not exceeding Rs.50,000/- for any item of expenditure covered by budget estimates.*
  2. The Chairman may write off as irrecoverable losses not exceeding Rs.1,000/- in a single case.*

24. Powers and duties of the Vice-Chairman :
The powers and duties of the Vice-Chairman shall be : ---
  i. to preside over the meetings of the Board or of the Standing Committee in the absence of the Chairman;
  ii. to enter into contracts on behalf of the Board in accordance with the Act or the rules made thereunder or the general or special instruments of the Board or the Standing Committee or the Chairman;
  iii. to exercise such other powers and to perform such other duties as the Chairman may deem fit to delegate to him.

25. Powers and duties of the Standing Committee:-
The Standing Committee shall exercise such powers and perform such duties as the Board may delegate to the Committee; Provided that such powers shall be exercised and duties performed in accordance with the directions or limitations, if any as may be given or imposed through any resolution of the Board; Provided further that all decisions of the Standing Committee shall be subject to the control of the Board which may cancel, suspend, or modify as it thinks fit, any such decision.

26 Powers and duties of the Secretary:-
The Secretary will be the principal executive officer of the Board and will work under the general control of the Chairman or the member of the Board referred in sub-rule (3) of rule 22 and of the Board. His powers and duties shall be ----*
  1. to implement all decisions taken by the Board or the Standing Committee;
  2. to co-ordinate and supervise the work of other officers and establishments of the Board;
  3. to convene under the directions of the Chairman or the Vice-Chairman meetings of the Board and of the Standing Committee;
  4. to maintain the Minutes book;
  5. to furnish to the Central Government all reports and Returns and other necessary documents required by the Act or the Rules;
  6. to administer the Provident Fund of the Board;
  7. to prepare the budget estimates of the Board;
  8. to sanction re-appropriation of grants under such powers as may be delegated by the Standing Committee and within such limits as may be prescribed by the Standing Committee;
  9. to undertake such other duties and to exercise such other powers as may, from time to time, be entrusted or delegated to him by the Board or the Chairman.

27. Other officers of the Board:-
The Board may have such other staff as it may consider necessary and the duties of the staff shall be as prescribed by the Board.

28. Salaries, allowances and conditions of service of officers and establishments of the Board:-
(1) Save as provided in Section 7 of the Act , all appointments to posts of officers and establishments in the service of the Board shall be made by the Board:-
Provided that ---
    i. No post of which the maximum salary exceeds Rs.1,300/- per mensem shall be created or filled without the previous sanction of the Central Government.*
    ii. the scale of pay and dearness allowance, travelling allowance and any other allowances applicable to the officers and establishments in the service of the Board shall be the same as those prescribed by the Central Government for officers of similar status save in the case of officers and specialists appointed on contract. The Board may require at its discretion, security from such of its employees and for such amounts as it thinks fit;
    iii. Officers or specialists appointed on contract shall be entitled to leave and leave salary under the terms which may, from time to time, be made applicable to the Central Government servants on contract on similar salaries. Such officers shall be entitled to travelling allowance, dearness allowance or any other allowances as, may from time to time, be provided for officers drawing similar salaries under the Central Government.
  2. (a) The Fundamental Rules and the Supplementary Rules of the Government of India shall apply to the grant of leave to officers and establishments in the service of the Board. Rule 9 of the Revised Leave Rules, 1933 shall apply to such members of the staff of the Board as remain in its service for a period exceeding one year and rule 10 shall be applicable to such members of the staff as remain in service for a period not exceeding one year.
Explanation: The powers vested under the Rules referred to above in the President shall be exercised by the Chairman and those of the Heads of Department by the Secretary.
  1. The Central Civil Services (Conduct) Rules, 1955, and the Central Civil Services (Temporary Services) Rules, 1965 as amended from time to time shall apply in relation to the employees of the Board, as they apply in relation to the employees of the Central Government.*
  2.The Board may, by resolution, allow the employees of the Board :-
    i. advance of pay on the eve of important festivals.
    ii. Advance for the purchase of conveyance on the same terms and conditions as govern the grant of such advances to Central Government servants.
    iii. Advance for construction or purchase of a house, including purchase of land, or extension of an existing house on the same terms and conditions as govern the grant of such advance to Central Government servants, subject to availability of funds in the appropriate head in the budget.
    iv. advance for purchase of warm clothing on the same terms and conditions as govern the grant of such advances to Central Government servants.
    v. Such other advances sanctioned by the Central Government from time to time for its employees, on the same terms and conditions as govern the grant of such advances to such employees.
  3. The Board may grant study leave to its employees in order to enable them to undertake study or research, or to obtain specialised training in scientific, technical or economic subjects connected with the silk industry on terms and conditions framed for this purpose. Such leave shall not be debited against the employee's leave account. Any employee of the Board, who is also a Government servant, shall be governed by the Study Leave Rules that would be applicable to him as a Government servant. 4( I) The Board shall establish and maintain a Contributory Provident Fund for the benefit of its employees and require them to subscribe to the Fund. Any employee of the Board on deputation to the Board who is also a Government servant shall continue to be governed by the conditions of service in regard to pension etc, which apply to him as a Government servant.
  4. The Provident Fund shall be administered by the Secretary or any other officer authorised by the Chairman in this behalf.
  (5) The Secretary may grant leave of any kind due and admissible excepting study leave, to any officer or members of the staff including the Directors working in the Research Stations or the Service Stations as well as the Board's Secretariat. Director or Deputy Director or Joint Secretary or Deputy Secretary holding independent charge of an Institute or an office as the case may be, may grant leave of any kind due and admissible, excepting study leave to any officer of the staff working under them.*

28.A. Pension-cum-gratuity benefits to the employees of the Board:-
Every employee of the Board, other than an employee who is on deputation to the Board, shall be entitled to pension, and death-cum-retirement gratuity (including family pension, extraordinary pension, and commutation pension) at such rates and under such conditions as are prescribed in the Liberalised Pension Rules by the Central Government for its employees of the corresponding grades; Provided that any such employee who was in the service of the Board before the 1st April 1966, and is continuing in such service on the 31st December, 1966, may within three months from the date last mentioned, opt, in writing, for the benefits of the Central Silk Board Contributory Provident Fund Rules, in which case nothing in this rule shall apply to such employees; Provided further that where the Contributory Provident Fund accounts of any person who was in the service of the Board on the 1st April 1966, and who ceased to be in such service after that date but before the 31st December, 1966, due to retirement on superannuation or death, have not been settled before the date last mentioned, then, such person shall be deemed to have opted to be governed by this rule.
Explanation: In this rule, "Liberalised Pension Rules" means the Liberalised Pension Rules of the Central Government, for the time being in force, regarding the grant of pension and gratuity to its employees.

29. Delegation of Powers by the Board:-
(I) The Board may, by resolution, delegate to the Chairman or the Vice-Chairman or the members of the Board referred to in sub-rule(3) of rule 22 or the Vice-Chairman or any officer of the Board, such of its powers under rule 28 as it deems fit.*
  1. A. All delegation of powers under the sub-rule (1) shall be intimated to the Central Government.*
  2. The authority empowered by the Board to appoint an officer or a member of the establishment in its service shall be competent to dismiss suspend, promote, or degrade such officer or members of the establishment. The procedure to be adopted in all cases of disciplinary action shall be governed by rules which obtain in Central Government offices
  3. The powers delegated by the Board under the rules shall be exercised subject to the control of the Board.

30. The working year of the Board:-
The working year of the Board shall be the financial year, that is to say the period beginning from the first of April and ending with the thirty-first of March of the year following.

31. Travelling and other allowances to members of the Board and its Committees:-
A member of the Board other than a Government servant shall be entitled to draw, in respect of any journey performed for the purpose of attending a meeting of the Board or of a committee thereof or for the purpose of discharging any duty assigned to him by the Board or the Committee concerned, travelling allowance and daily allowance in accordance with Ministry of Finance, Department of Expenditure Office memorandum No.6 (26) EIV/59 dated the 5th September, 1960 as amended from time to time.
NOTE: No travelling or daily allowance shall be admissible to a member unless he certifies that he has not drawn any travelling or daily allowance from any other source in respect of the journey and the halt for which the claim is made.

32. Maintenance of accounts:-
The Secretary shall maintain or cause to be maintained accounts of receipts and expenditure under Section 12(1) of the Act . The accounts shall be maintained in Forms 1 to 11, as may be necessary.

33. Heads of receipts:-
The receipts shall include all sums received by the Board during the year to which the accounts relate and shall be shown under the following heads:-
  a. sums received by the Board by way of grant from the Central Government under Section 9(1) of the Act, or otherwise;
  b. sums received by the Board by way of cess under Section 10 of the Act ;
  c. interest accrued on investments;
  d. miscellaneous;
The opening balance shall be shown at the head of the account on the receipt side.

34. Heads of expenditure:-
The expenditure shall be shown under the following heads or any other heads that may be decided upon by the Board from time to time:-
  a. officer's salaries and establishment charges;
  b. travelling and other allowances;
  c. stationery and printing charges;
  d. postage and telegram charges;
  e. grants-in-aid, made for purposes of development of the industry;
  f. measures taken for promoting scientific and technological research propaganda, etc

35. Maintenance of and operation upon bank accounts and investments of the funds of Board:-
(1) All moneys accruing or payable to the funds of the Board, either by way of grants from the Central Government under Section 9(1) of the Act, or by way of cess under Section 10 of the Act , or accruing from any other source or sources, shall be received by the Secretary or such other officer as the Board or the Chairman may authorise in this behalf. The amount or amounts so received shall as soon as practicable be duly acknowledged by a receipt in Form 5 and deposited in the Reserve Bank of India or such scheduled bank, as may be approved for this purpose by the Central Government under Section 9(2) of the Act , to the account of the Board. All receipts should be credited to the account of the Board in the Bank and shall not be utilised to meet expenditure for any other purpose.
  2. The receipt books in Form 5 shall be numbered serially by machine and the unused forms shall be kept in the custody of the Secretary or such other officer of the Board as may be authorised by the Board or by the Chairman in this behalf.
  3. All payments by or on behalf of the Board shall be made by cheques except for amounts not exceeding Rs.100/- which may be made in cash from the amount of imprest sanctioned for such purposes.
  4. Such cheques and all orders for making deposits or investments or for the withdrawal of the same or for the disposal, in any other manner of the funds of the Board shall be signed by the Secretary or, in his absence from headquarters, by the Assistant Secretary or by any other officer authorised by the Chairman in this behalf.
  5. No payment shall be made out of the accounts of the Board unless the expenditure is covered by a budget grant, provided, however, that the Chairman may at his discretion authorise expenditure being incurred in anticipation of a budget grant.
  6. There shall be drawn from the Bank and placed at the disposal of the Secretary a permanent advance of Rs.10,000/- to be recouped as required, and in any case at the end of each month, to meet petty expenditure of the office of the Board.*
  7. The Secretary and the Directors of Research Stations at Ranchi, Berhampore and Mysore shall have powers to sanction expenditure of a miscellaneous or contingent nature upto an amount not exceeding Rs.2,000/- in each case. The Deputy Secretary or Assistant Secretary authorised in this behalf by the Board shall have powers to sanction expenditure upto an amount not exceeding Rs.500/- in each case.*
  8. All monetary transactions shall be entered in the cash book as soon as they occur and attested by the Secretary or any other officer, authorised by the Chairman, in token of check. The cash book shall be closed daily and completely checked by the Secretary, or the officer authorised by him in this behalf. At the end of each month the Secretary or the officer so authorised shall verify the cash book and the cash in hand and record a signed and dated certificate to that effect.
  9. All payments by the Board shall be made on bills or other documents duly prepared and passed by the Secretary or other officer authorised in this behalf. The paid vouchers shall be stamped "paid" or so cancelled that they cannot be used a second time. They should then be kept serially numbered and produced at the time of audit.

36. Deposit in bank or investment in securities of surplus funds:-
(1) Any funds not required for current expenditure may be placed in fixed deposit with the Reserve Bank of India or any scheduled bank approved in this behalf by the Central Government, or invested in the name of the Board in any security in which trust property may lawfully be invested under the Indian Trust Act, 1882 (ii of 1882).
  2. The placing of money in fixed deposit and the investment thereof and the disposal of money so placed or invested shall require the sanction of the Chairman.

37. Audit of Accounts:-
(1) Accounts shall be made up for each financial year. These accounts shall be audited by such auditors as the Central Government may appoint under Section 12(2)of the Act . The audited statement of receipts and expenditure together with the auditors report thereon, shall be submitted to the Central Government not later than the 31st October following.*
  2. An abstract statement of receipts and expenditure shall be published in the Gazette of India
  3. The annual accounts shall be set out and produced by the Secretary before the auditors for scrutiny on or before the 31st of July each year following the close of the financial year to which they relate.*
   4. The auditors shall have the power to disallow any item of expenditure which, in their opinion, has not been properly incurred for purposes of the Act. The Central Government may, under Section 12(3) of the Act, and on the application of the Board allow any item of expenditure disallowed by the auditors

  5. The cost of audit will be a charge on the funds of the Board.

38. Borrowing of funds:-
The Board may borrow funds from the Central Government Or from any of the corresponding new banks constituted under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings), Act, 1970 ( 5 of 1970), with the previous approval of the Central Government, for carrying out its developmental and other functions under the Act.*

39. Procedure for execution of Contracts:-
(1) The Board may enter into and perform all such contracts as it may consider necessary or expedient forarrying into effect the provisions of the Act, and in particular, the provisions of Section 4(2) of the Act .
  2. Every contract made under or for any purpose of the Act shall be made on behalf of the Board by the Chairman or the Secretary, provided that the prior sanction of the Standing Committee is obtained in respect of any contract involving an expenditure exceeding Rs.50,000/-*

40. Common Seal and affixing of the same to Contracts :-
The common seal of the Board, as provided for in Section 4(2) of the Act, shall remain in the custody of Secretary. The seal shall not be affixed to any instrument except in the presence of the Chairman, of the Chairman, Vice-Chairman or two members of the Standing Committee authorised in this behalf by the Chairman; and the Chairman, Vice-Chairman or the said two members shall sign the contract in token of the fact that the same was sealed in his or their presence.
  1. The Common Seal shall not be affixed to any instrument except in the presence of the Secretary who shall also sign the instrument in token of the fact that the same was sealed in his presence.
  2. An instrument to which the Common Seal is duly affixed shall be legally binding on the Board.
  3. The draft of all contracts shall be submitted to a Solicitor approved by the Board for advice as to the correctness of their form.

41. Preparation and submission of Annual Budget Estimates:-
(1) The budge etstimates of the Board for each financial year shall be prepared by the Secretary in such form as the Central Government may, from time to time direct and shall be submitted by the Secretary with his recommendations to the Standing Committee for approval at a meeting of the Standing Committee to be held before the 15th July of the preceding year.*
   1. A copy of the budget estimates shall be sent to each member of the Standing Committee and of the Board by registered post at least 10 clear days before the meeting of the Standing Committee or the Board, at which these estimates are to be considered
  2. The Standing Committee shall consider and approve the budget estimates with such changes as it may consider necessary.
  3. The budget estimates as approved by the Standing Committee shall be placed before the meeting of the Board to be held before the 15th of August of the preceding year.*
  4. The budget estimates as passed by the Board shall be submitted to the Central Government not later than the 15th of September next following.*
   5. It shall be open to the Central Government to make such alteration in the budget estimates as may be considered necessary before according approval.

42. Supplementary Estimate:-
The Standing Committee may cause a supplementary estimate to be prepared and submitted to the Board, if in respect of any financial year, further expenditure is likely to be incurred. Every such supplementary estimate shall be considered and sanctioned by the Board and submitted to the Central Government in the same manner as if it were the original annual estimate, not later than the fifteenth of February of the financial year to which it relates. The provision of rule 41 shall, so far as it may, apply to such supplementary estimate.

43. Re-appropriation:-
(1) If the Standing Committee finds in the course of the year that there is likely to be an excess of expenditure over the sanctioned budget estimate under any head, it shall examine the llotment under each head of the budget estimate with the object of discovering probable savings under any other head and effecting a re-appropriation. Where such re-appropriation is feasible, it may sanction the re-appropriation subject to such conditions as may be laid down by the Central Government, from time to time.
  2. Funds shall not be re-appropriated to meet expenditure on a new service not contemplated in the Budget Estimates except with the prior approval of the Central Government.

44. Sanction of expenditure not to be operative until appropriation of funds :-
A sanction to expenditure will not become operative until there has been an appropriation of funds under these rules to cover it.

45. Submission of estimates regarding Government servant on the staff of the Board:-
The Secretary shall submit on due dates prescribed by the Central Government the usual estimates in respect of the Government servants working on the staff of the Board whose pay in the first instance will be debited to the general revenue for inclusion in the "demands for grants of the Central Government".

CENTRAL SILK BOARD RULES
Appendix
FORM 1

Cash Receipts
Date	Item or Serial.No	From whom received	Particulars	Amount Cash Bank		Initials of responsible authority
			Opening Balance Carried Over	Rs. Ps	Rs. Ps.

Disbursements
Date	Voucher or Serial No.	To whom paid	Particulars	Budget head to which debitable	Amount Cash Bank		Initials of responsible authority
				Brought forward Carried over	Rs. Ps	Rs. Ps