The Faridabad Development Corporation Act, 1956

THE FARIDABAD DEVELOPMENT CORPORATION ACT, 1956

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THE FARIDABAD DEVELOPMENT CORPORATION ACT, 1956 ____________ ARRANGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS 1. CHAPTER II ESTABLISHMENT OF THE CORPORATION 3. Disqualification for being appointed, or for continuing as, member of the Corporation. Vacancies amongst members or defect in the constitution not to invalidate acts or proceedings of the Corporation. Authentication of orders and other instruments of the Corporation. Appointment of Administrator and other officer of the Corporation.

SECTIONS

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Members and officers of the Corporation to be public servants. Removal of disqualification for membership of Parliament. Validation of certain transactions.

THE FARIDABAD DEVELOPMENT CORPORATION ACT, 1956

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Section 1 — Short title.―This Act may be called the Faridabad Development Corporation Act, 1956. 2. Definitions

Section 3 — Incorporation

Section 4 — Constitution of the Corporation

Section 5 — Term and conditions of service of member

Section 6 — Disqualification for being appointed, or for continuing as, member of the Corporation

THE FARIDABAD DEVELOPMENT CORPORATION ACT, 1956 ACT NO. 90 OF 1956 [28th December, 1956.] An Act to provide for the establishment and regulation of a trading Corporation for the purpose of carrying on and promoting trade and industry in the town of Faridabad, assisting in the rehabilitation of displaced persons settled therein and for matters connected therewith. Short title.―This Act may be called the Faridabad Development Corporation Act, 1956. Definitions.―In this Act, unless the context otherwise requires,― (a) “Corporation” means the Faridabad Development Corporation established under section 3; (b) “displaced person” means any person who, on account of the setting up of the Dominions of India and Pakistan or on account of civil disturbances or the fear of such disturbances in any area now forming part of Pakistan, has, after the 1st day of March, 1947, left, or been displaced from, his place of residence in such area and who has been subsequently residing in India; (c) “Faridabad” means the new township at Faridabad in the district of Gurgaon in the State of 1 [Haryana], the area of which is described in the Schedule; (d) “member” means a member of the Faridabad Development Corporation and includes its Chairman; (e) “prescribed” means prescribed by rules made under this Act. CHAPTER II ESTABLISHMENT OF THE CORPORATION 3. Incorporation.―(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established a Corporation by the name of the Faridabad Development Corporation. (2) The said Corporation shall be a body corporate having perpetual succession and a common seal, and shall by the said name sue and to be sued.

has, directly or indirectly, any interest in a subsisting contract made with, or in any work being done, for,

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Section 7 — Temporary absence of any member

Section 8 — Vacancies amongst members or defect in the constitution not to invalidate acts or proceedings of the Corporation

Section 9 — Committees of the Corporation

Section 10 — Meetings of the Corporation

Section 11 — Authentication of orders and other instruments of the Corporation

Section 12 — Appointment of Administrator and other officer of the Corporation

Section 13 — General duty of the Corporation

Section 14 — Powers of the Corporation

has, directly or indirectly, any interest in a subsisting contract made with, or in any work being done, for, the Corporation except as a shareholder (other than a director) in an incorporated company: Provided that where he is a shareholder, he shall disclose to the Central Government the nature and extent of shares held by him in such company. Temporary absence of any member.―If any member of the Corporation is by infirmity or otherwise rendered temporarily incapable of carrying out his duties or is absent on leave or otherwise in circumstances not involving the vacation of his appointment, the Central Government may appoint another person to act in his place during his absence. Vacancies amongst members or defect in the constitution not to invalidate acts or proceedings of the Corporation.―No act or proceeding of the Corporation shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereof. Committees of the Corporation.―The Corporation may constitute such committees for general or special purposes as the Corporation deems necessary to carry out the purposes of this Act. Meetings of the Corporation.―(1) The Corporation shall meet for the transaction of business at such times and places as may be prescribed: Provided that the Chairman may, whenever he thinks fit, and shall, upon the written requisition of not less than two members, call a special meeting. (2) The Chairman or, in his absence, any member chosen by the members present from among themselves, shall preside at a meeting of the Corporation. (3) All questions which come before any meeting of the Corporation shall be decided by majority of votes of the members present, and in the case of an equality of votes, the Chairman, or in his absence, any other person presiding, shall have a second or casting vote. Authentication of orders and other instruments of the Corporation.―All orders and decisions of the Corporation shall be authenticated by the signature of the Chairman or any other member authorised by the Corporation in this behalf, and all other instruments issued by the Corporation shall be authenticated by the signature of the Administrator or any other officer of the Corporation authorised in like manner in this behalf.

(2) Without prejudice to the generality of the foregoing provision, such power shall include the

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Section 15 — Capital of the Corporation

Section 16 — Grants and loans to the Corporation

Section 17 — Vesting of property in the Corporation

Section 18 — Repayment of capital and loan with interest

Section 19 — Corporation to have rights and liabilities of the Central Government in certain cases

(2) Without prejudice to the generality of the foregoing provision, such power shall include the power― (a) to acquire and hold such property, both movable and immovable, as the Corporation may deem necessary for efficiently performing its functions under this Act and to make improvements in such property and to transfer by way of sale, lease or otherwise any such property; (b) to carry on or promote any trade, business or industry; (c) to give financial or other assistance to persons to enable them to carry on trade, business or industry in Faridabad primarily with a view to providing employment to, and rehabilitating, displaced persons settled therein; (d) to construct or cause to be constructed residential or other buildings and to sell or let such buildings or cause them to be sold or let, on such terms as may be prescribed; (e) to advance loans on such terms and for such purposes as may be prescribed; (f) to supply or cause to be supplied, in accordance with the law for the time being in force, electrical energy for domestic and industrial purposes at reasonable rates; (g) to take such other measures as the Corporation may deem necessary for the rehabilitation of displaced persons settled in Faridabad; (h) to take such steps as may be necessary for improving the economic and social conditions of the inhabitants of Faridabad. (3) Nothing in this section shall affect the exercise of any power or the performance of any function by any local authority having jurisdiction in Faridabad. Capital of the Corporation.―All non-recurring expenditure incurred by the Central Government or the body known as the Faridabad Development Board for and in connection with the development of Faridabad or for any of the purposes referred to in this Act upto the date of the establishment of the Corporation and declared to be capital expenditure by the Central Government shall be treated as the capital provided by the Central Government to the Corporation. Grants and loans to the Corporation.―The Central Government may, after due appropriation made by Parliament by law in this behalf, make such grants and advance such loans to the Corporation as the Central Government may deem necessary for the performance of the functions of the Corporation under this Act; and all grants made and all loans advanced shall be on such terms and conditions as the Central Government may determine. Vesting of property in the Corporation.―All property, assets and funds owned or acquired by the Central Government or purporting to have been owned or acquired by the body known as the Faridabad Development Board for the purposes of the development of Faridabad or for any of the purposes referred to in this Act before the establishment of the Corporation shall, on such establishment, vest in the Corporation unless the Central Government otherwise directs in respects of any part of such property, assets or funds. Repayment of capital and loan with interest.―The Corporation shall repay, at such intervals and on such terms as the Central Government may determine, the amount of capital provided under section 15 and all loans advanced under section 16 with interest at such rate as may, from time to time, be fixed by that Government and such repayment of capital or loan or payment of interest shall be deemed to be part of the expenditure of the Corporation. Corporation to have rights and liabilities of the Central Government in certain cases.―(1) All rights, liabilities and obligations of the Central Government which, whether arising out of any contract or otherwise, were acquired or incurred by it in connection with any transaction for the development of Faridabad or for any of the purposes referred to in this Act before the establishment of the Corporation, shall be deemed to have been acquired or incurred by the Corporation and shall be the rights, liabilities and obligations, respectively, of the Corporation.

(2) All suits or other legal proceedings instituted or which might but for the issue of the notification

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Section 20 — Fund of the Corporation

Section 21 — Provision for depreciation and reserve and other funds

Section 22 — Power of the Corporation to spend

Section 23 — Budget

Section 24 — Annual report

Section 25 — Accounts and audit

Section 26 — Amount due to the Corporation to be first charge

Section 27 — Direction

Section 28 — Returns and reports

Section 29 — Mode of recovery of moneys due to the Corporation

(2) All suits or other legal proceedings instituted or which might but for the issue of the notification under sub-section (1) of section 3 has been instituted by or against the Central Government may be continued or instituted by or against the Corporation. Provision for depreciation and reserve and other funds.―(1) The Corporation shall make such provision for depreciation and for reserve and other funds as the Central Government may from time to time direct. (2) The management of these funds, the sums to be carried from time to time to the credit thereof and the application of the moneys comprised therein shall be determined in accordance with such directions as the Central Government may from time to time issue. Accounts and audit.―(1) The Corporation shall cause to be maintained such books of account and other books in relation to its accounts in such form and in such manner as may be prescribed. (2) The accounts of the Corporation shall be audited at such times and in such manner as may be prescribed. Amount due to the Corporation to be first charge.―(1) Notwithstanding anything contained in any other law, where a loan has been advanced to any person for the construction of a building or where a building has been transferred to any person, the amount due to the Corporation on account of the loan or transfer together with interest thereon shall be a first charge on the building so constructed or transferred. (2) The Corporation may also take such further security as it may consider necessary for advancing any loan or for transferring any building. Returns and reports.―The Corporation shall furnish to the Central Government such returns, statistics, accounts and other information with respect to its property or activities as the Central Government may from time to time require. Mode of recovery of moneys due to the Corporation.―When any money is due to the Corporation from any person, then, without prejudice to any other mode of recovery, the Corporation may, after giving that person an opportunity of being heard, issue a certificate to the Collector of the amount due and the Collector shall proceed to recover that amount in the same manner as an arrear of land revenue.

30. Delegation of powers.―The Corporation may, by general or special order in writing, delegate to

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Section 30 — Delegation of powers

Section 31 — Members and officers of the Corporation to be public servants

Section 32 — Removal of disqualification for membership of Parliament

Section 33 — Bar of legal proceedings

Section 34 — Validation of certain transactions

Section 35 — Power to remove difficulties

Section 36 — Power to make rules

Delegation of powers.―The Corporation may, by general or special order in writing, delegate to the Chairman or any other member or any officer of the Corporation, subject to such conditions and limitations (if any) as may be specified in the order, such of its powers and duties under this Act as it may deem necessary for the efficient running of the day-to-day administration of the Corporation. Members and officers of the Corporation to be public servants.―All members and officers of the Corporation shall, when acting or purporting to act in pursuance of any of the provisions of this Act, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). Removal of disqualification for membership of Parliament.―It is hereby declared that the office of the member of the Corporation shall not disqualify its holder for being chosen as, or for being, a member of either House of Parliament. Bar of legal proceedings.―No suit or other legal proceedings shall lie against any member or officer of the Corporation in respect of anything which is in good faith done or intended to be done in pursuance of this Act. Validation of certain transactions.―On the establishment of the Corporation under section 3,― (a) all action purporting to have been taken, and all transactions purporting to have been made, by or with the body known as the Faridabad Development Board (including any action or transaction by which any property, asset or right was purported to have been acquired or any liability or obligation, whether by contract or otherwise, was purported to have been incurred) shall be deemed to have been validly and lawfully taken or made by or with the Corporation as if this Act were in force and the Corporation were in existence on the day on which such action was taken or transaction was made; and (b) in particular, and without prejudice to the generality of the foregoing provision,― (i) all property and assets vesting in the body known as the Faridabad Development Board shall vest in the Corporation; (ii) all rights, liabilities and obligations of the body known as the Faridabad Development Board, whether arising out of any contract or otherwise, shall be the rights, liabilities and obligations, respectively, of the Corporation; and (iii) all leases granted by, all contracts made with, and all instruments executed on behalf of, the body known as the Faridabad Development Board shall be deemed to have been granted by, made with, or executed on behalf of, the Corporation and shall have effect accordingly. Power to remove difficulties.―If any doubt or difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, make such provision or give such direction, not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for the removal of the doubt or difficulty, and the order of the Central Government, in such cases, shall be final.

(g) the form and manner in which returns, statistics, accounts and other information may be

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(g) the form and manner in which returns, statistics, accounts and other information may be furnished to the Central Government; (h) any other matter which has to be, or may be, prescribed under this Act. 1 [(3) Every rule made by the Central Government 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 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.] ________________ THE SCHEDULE [See section 2 (c)] Area of Faridabad.―Faridabad is included within the following boundaries, namely:― North ― Karkhana garden, Railway Station and Rest House, Faridabad, buildings belonging to Shrimati Sushila Devi and Abadi Fetehpur Chandela. West ― Badkhal Band; Hill of villages Dabwa, Nawadah Koh and Daulatabad; Abadi village Saran. 2 and the Schedule, for sub-section (3) (w.e.f.