DIRECTORATE OF LEGAL AFFAIRS

KHADI AND VILLAGE INDUSTRIES COMMISSION

3, IRLD ROAD, VILE PARLE (W), MUMBAI 400 056.

No. LA/OO/MCC/MIN./2010-11 October 8, 2010

OFFICE ORDER NO.2063

Sub: Appointment of Nodal Officer for

Monitoring of the court cases - reg.

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It is a matter of grave concern that inspite of several instructions, the field offices are not properly monitoring the court cases and furnishing the information regarding the court cases properly in the format prescribed by the Directorate of Legal Affairs. On account of non-receipt of correct and uptodate information regarding the pending court cases from the field offices, the Directorate of Legal Affairs is not in a position to furnish complete and correct information to the Ministry and the Ministry has also expressed its displeasure in the matter on more than one occasion.

2.The Ministry of MSME vide its letter dated 4th October, 2010, while expressing its concern over the poor monitoring of the court cases by the KVIC, instructed that a Nodal Officer should be designated in every field offices to monitor the court cases concerning the KVIC and to furnish weekly progress report on pending court cases wherein the interest of the Ministry of MSME is involved or the Union of India is impleaded as one of the Respondents.

3.In compliance of the aforesaid directives of the Ministry, the concerned In-charges of the field offices are designated as Nodal Officers in their respective offices for monitoring the court cases concerning the KVIC and to furnish weekly progress report on the cases in which Union of India is a party or the interest of MSME is involved to the Ministry through the Resident Representative, KVIC New Delhi and also to liaison with the Ministry in the matter. In-charges of the field offices are directed to be more careful and serious in handling the court matters and furnishing timely information thereon in the format prescribed.

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4.The Nodal Officer so appointed has to ensure that copy of all the petitions filed against KVIC, wherein Union of India is also impleaded as Party should be forwarded to the Ministry, alongwith the parawise comments on the petition, through the RR, New Delhi and get the approval of the Ministry on the parawise comments before final reply is filed in the Court. State/Divisional Directors should also ensure that the interest of the Union of India is protected in every case and find out whether Central Govt. Standing Counsel for defending the interest of the Union of India is engaged by the Branch Secretariat of the Law Ministry or not through the Panel Advocate of the KVIC, who is defending the case on behalf of the KVIC.

5.In case a Central Govt. Standing Counsel is engaged in a matter on behalf of the Union of India, all the necessary records pertaining to the case along with the approved parawise comments should be furnished to him to enable him to defend the matter. In case, no Central Govt. Standing Counsel is appointed, the advocate of the KVIC may be instructed to defend the interest of the Union of India also and it must be specifically mentioned in the counter affidavit that the same is filed on behalf of the KVIC as well as the Union of India. The orders, including interim orders, if any, passed by the court in any case must also be intimated to the Ministry immediately.

6.Apart from furnishing the weekly progress report as aforesaid to the Ministry, the Nodal Officer must ensure that the details of pending court cases are furnished to the Director, Legal Affairs on or before 7th day of every month in the prescribed format already circulated along with a certificate of the Nodal Officer certifying that a correct and complete information regarding all the pending court cases concerning his office has been furnished and there are no lapses in handling the court cases and he is properly monitoring all the court cases pertaining to his office.

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7.The compliance of the directives contained in this circular may be ensured by all concerned and for any lapses in handling the court cases or in furnishing the weekly progress report to the Ministry concerning the court cases where Union of India is a party and monthly progress report of all the pending court cases to the Director, Legal Affairs, the Incharge of the concerned field office, being the Nodal Officer will be held personally responsible.

CHIEF EXECUTIVE OFFICER

To

  1. All State/Divisional Directors of the KVIC
  2. The Director (Legal Affairs), KVIC, Mumbai
  3. The Resident Representative, KVIC, New Delhi.

Copy to:

1)All Zonal Dy. C.E.Os.- with a request to ensure the strict compliance of the circular by the State/Divisional Directors and the institutions.

2)All Industry/Programme Directors at C.O. Mumbai.

3)The Director (Publicity)- with instruction to publish the same in the ensuing issue in a prominent page.

4)Director (I. T)- to place in the web-site of the KVIC.

5)All Members of the Commission.

6)Financial Adviser

7)Secretary to Chairperson

CHIEF EXECUTIVE OFFICER

4. In view of the above, all the State/Divisional Directors are directed to collect the correct and uptodate information regarding the original and market value of the individual properties mortgaged by the institutions and to upload the same in the website suitably on receipt of password for access to the data base in the website from the Director, IT. As the matter is time bound, it must be ensured that the entire exercise is completed on or before 30th Nov.,10 and compliance report is furnished in the matter. For any lapses in the matter, responsibility will be fixed on the Director concerned.

CHIEF EXECUTIVE OFFICER

To

All State/Divisional Directors of the KVIC

Copy to:

All Zonal Dy. C.E.Os.- with a request to ensure the strict compliance of the circular by the State/Divisional Directors.

Copy for information to:

1) All Industry/Programme Directors at C.O. Mumbai

2) The Director (Publicity)- with instruction to publish the same in the

ensuing issue in a prominent page.

3) Director (I. T)- to place in the web-site of the KVIC.

Copy forwarded for kind information to:

8)All Members of the Commission.

9)Financial Adviser

10)Secretary to Chairperson

CHIEF EXECUTIVE OFFICER

Directorate of Legal Affairs

Khadi & Village Industries Commission,

3 - Irla Road, Vile Parle (West),

MUMBAI - 400 056.

Telefax : +91 022 671 35 38

No. LA/Legal Circular/EM/2010-11 Date: 07/09/10

C I R C U L A R

Sub:Revaluation of the immovable properties mortgaged with the Commission- reg.

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Attention is drawn to the circular bearing No. FIN/ GENL/ CIR/ 98-99 dated 20th May, 1998 issued by the Financial Adviser on the captioned subject.

2.As per the said circular the borrower institutions are permitted to undertake revaluation of their immovable properties after five years of its original valuation. The revaluation is required to be done only through Govt. Approved Valuers.

3.The above provision of revaluation of the immovable properties by the institutions was introduced to enable the institutions to enhance its security value and thereby to make them capable of availing more financial assistance to strengthen their activities.

4.Inspite of the above, it is observed that most of the institutions have not come forward to revalue its immovable properties and to enhance the value of its securities. In many cases, it is also seen that the value of mortgage created by institutions are not sufficient to cover the present outstanding loan with them because the mortgage value is shown at the original value of the property.

Contd…2..
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5.In view of the above, all the Incharges of the field offices are directed to suitably advice/instruct the institutions functioning under their jurisdiction to revalue its immovable properties mortgaged with the Commission as per the provisions and in the manner provided under circular dt. 20th May, 1998 issued by the Financial Adviser. It should be ensured that the said exercise is completed by the institutions on or before 30th Nov.,10 and the compliance report is furnished to the Central Office through the Zonal Dy.C.E.Os.

CHIEF EXECUTIVE OFFICER

To

All State/Divisional Directors of the KVIC

Copy to:

All Zonal Dy. C.E.Os.- with a request to ensure the strict compliance of the circular by the State/Divisional Directors and the institutions

Copy for information to:

1) All Industry/Programme Directors at C.O. Mumbai

2)The Director (Publicity)- with instruction to publish the same in the

ensuing issue in a prominent page.

3) Director (I. T)- to place in the web-site of the KVIC.

Copy forwarded for kind information to:

11)All Members of the Commission.

12)Financial Adviser

13)Secretary to Chairperson

CHIEF EXECUTIVE OFFICER