#THE FARIDABAD DEVELOPMENT CORPORATION ACT, 1956 
____________ 

##ARRANGEMENT OF SECTIONS 
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###CHAPTER I 

###PRELIMINARY 

SECTIONS 

1. Short title. 
2. Definitions. 

###CHAPTER II 

###ESTABLISHMENT OF THE CORPORATION 

3. Incorporation. 
4. Constitution of the Corporation. 
5. Term and conditions of service of member. 
6. Disqualification for being appointed, or for continuing as, member of the Corporation. 
7. Temporary absence of any member. 
8. Vacancies amongst members or defect in the constitution not to invalidate acts or proceedings of 
  the Corporation. 
9. Committees of the Corporation. 
10. Meetings of the Corporation. 
11. Authentication of orders and other instruments of the Corporation. 
12. Appointment of Administrator and other officer of the Corporation. 

###CHAPTER III 

###POWERS AND FUNCTIONS OF THE CORPORATION 

13. General duty of the Corporation. 
14. Powers of the Corporation. 
15. Capital of the Corporation. 
16. Grants and loans to the Corporation. 
17. Vesting of property in the Corporation. 
18. Repayment of capital and loan with interest. 
19. Corporation to have rights and liabilities of the Central Government in certain cases. 
20. Fund of the Corporation. 
21. Provision for depreciation and reserve and other funds. 
22. Power of the Corporation to spend. 
23. Budget. 
24. Annual report. 
25. Accounts and audit. 
26. Amount due to the Corporation to be first charge. 

###CHAPTER IV 

###MISCELLANEOUS 

27. Direction. 
28. Returns and reports. 
29. Mode of recovery of moneys due to the Corporation. 
30. Delegation of powers. 
31. Members and officers of the Corporation to be public servants. 
32. Removal of disqualification for membership of Parliament. 
33. Bar of legal proceedings. 
34. Validation of certain transactions. 
35. Power to remove difficulties. 
36. Power to make rules. 
THE SCHEDULE. 


 
#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. 

  BE it enacted by Parliament in the Seventh Year of the Republic of India as follows:― 

###CHAPTER I 

###PRELIMINARY 

1. **Short title.**―This Act may be called the Faridabad Development Corporation Act, 1956. 

2. **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 
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. 

4. **Constitution of the Corporation.**―The Corporation shall consist of a Chairman and such other 
members,  being  not  less  than  four  and  not  more  than  eight,  as  the  Central  Government  may,  by 
notification in the Official Gazette, appoint. 

5. **Term and conditions of service of member.**―(1) The term of office and conditions of service of 
the Chairman and other members shall be such as may be prescribed. 

(2) The Chairman or any other member may resign his office by writing under his hand addressed to 
the Central Government, but he shall continue in office until the appointment of his successor is notified 
in the Official Gazette. 

(3) A  casual  vacancy  created  by  the  resignation  of  the  Chairman  or  any  other  member  under 
sub-section (2) or for any other reason shall be filled by fresh appointment. 

6. **Disqualification for  being  appointed,  or for  continuing as, member  of the  Corporation.**―A 
person shall be disqualified for being appointed or for continuing as a member of the Corporation if he 
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. 

7. **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. 

8. **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. 

9. **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. 

10. **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. 

11. **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. 

12. **Appointment of Administrator and other officer of the Corporation.**―(1) There shall be an 
Administrator of the Corporation who shall be appointed by the Central Government. 

(2) The Administrator shall be the chief executive officer of the Corporation and all other officers of 
the Corporation shall be subordinate to him. 

(3) The Administrator shall have the right to take part in the discussions of the Corporation or of any 
of its committees but shall not have the right to vote at the meetings of the Corporation or of any of its 
committees: 

  Provided that  when  one  of the  members  of the  Corporation is  appointed under 
sub-section  (1)  as  the  Administrator,  such  Administrator  shall  have  all  the  rights  and  privileges  of  a 
member. 

(4) The  Corporation  may  appoint  such  other  officers  as  it  may  consider  necessary  for  the  efficient 
performance of its functions under this Act. 

###CHAPTER III 

###POWERS AND FUNCTIONS OF THE CORPORATION 

13. **General duty of the Corporation.**―It shall be the general duty of the Corporation to carry on 
and promote trade, business and industry in Faridabad, to assist in the rehabilitation of displaced persons 
settled therein and to manage and develop the property of the Union vested in the Corporation. 

14. **Powers of the Corporation.**―(1)  The  Corporation  may  exercise  all  such  powers  as  may  be 
necessary or expedient for the purpose of carrying out its functions under this Act. 

(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. 

15. **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. 

16. **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. 

17. **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. 

18. **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. 

19. **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 
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. 

20. **Fund of the Corporation.**―(1) The Corporation shall have its own Fund and all receipts of the 
Corporation shall be carried thereto and all payments by the Corporation shall be made therefrom. 

(2) All moneys belonging to the Fund shall be deposited in such bank or invested in such manner as 
may be decided by the Corporation. 

21. **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. 

22. **Power of the Corporation to spend.**―The Corporation shall have power to spend such sums as 
it  thinks  fit  for  performing  its  functions  under  this  Act,  and  such  sums  shall  be  treated  as  expenditure 
payable out of the Fund of the Corporation. 

23. **Budget.**―The  Corporation  shall  prepare,  in  such  form  and  at  such  time  each  year  as  may  be 
prescribed, a budget in respect of every financial year next ensuing showing the estimated receipts and 
expenditure, and copies thereof shall be forwarded to the Central Government. 

24. **Annual report.**―The Corporation shall prepare in such form and at such time each year as may 
be prescribed an annual report giving a true and full account of its activities during the previous financial 
year  and  copies  thereof  shall  be  sent  to  the  Central  Government  and  the  Government  of  the  State  of 
Punjab. 

25. **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. 

26. **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. 

###CHAPTER IV 

###MISCELLANEOUS 

27. **Direction.**―For the purposes of this Act, the Central Government may, from time to time, give to 
the  Corporation  such  general  or  special  directions  as  the  Central  Government  thinks  fit  and  in  the 
performance of the functions, the Corporation shall comply with such directions. 

28. **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. 

29. **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 
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. 

31. **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). 

32. **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. 

33. **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. 

34. **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. 

35. **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. 

36. **Power to make rules.**―(1) The Central Government may, by notification in the Official Gazette, 
make rules for carrying out the purposes 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:― 

  (a) the term of office and other conditions of service of members; 

  (b) the terms and conditions of service of the Administrator and other officers of the Corporation; 

  (c) meetings of the Corporation and the procedure for conducting business thereat; 

  (d) the intervals at which, and the terms on which, the capital provided or loan advanced by the 
Central Government to the Corporation may be repaid, and the rate at which interest may be paid on 
the capital provided or loan advanced by the Central Government; 

  (e) the form and manner in which the budget and the annual report may be prepared; 

  (f) the manner in which the accounts of the Corporation may be maintained and audited; 

  (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. 

(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. 

  *East*    ―      Delhi-Mathura Road. 

  *South*  ―     Abadi village Majasar. 

  *West*   ―      Badkhal Band; Hill of villages Dabwa, Nawadah Koh and Daulatabad; Abadi 
village Saran.