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YOGA UNDERTAKINGS (TAKING OVER OF
MANAGEMENT) ACT, 1977
21 of 1977
5th July, 1977
STATEMENT OF OBJECTS AND REASONS The Government of India in the Ministry of Health and Family Welfare (Department of Health) have given a total grant of Rupees 16,01,371.55 to the Vishwayatan Yogashram, New Delhi, from the year 1969 to 31-12-1975 through the Central Council for Research in Indian Medicine and Homeopathy for running a Clinical Research Unit (Yoga). Subsequently, a Central Research Institute (Yoga) was established as a registered society in the Yogashram with effect from the 1st January, 1976 to study the effects of yoga in various diseases like diabetes, asthma, etc. and to study the effects of yogic kriyas on various organs of healthy persons. A sum of Rs. 10,40,000 was given as grant-in-aid to the Central Research Institute during the period from 1-1-1976 to 31-3-1977. Shri Dhirendra Brahamachari was Managing Trustee of the Vishwayatan Yogashram and Director of the Central Research Institute for Yoga. Consequent on an inquiry into the utilisation of the funds sanctioned to the Clinical Research Unit (Yoga) at the Vishwavatan Yogashram and later to the Central Research institute (Yoga), New Delhi, it has been found that the money given as grant-in-aid has been systematically siphoned away by falsificaton of accounts by the Managing Trustee of the Yogashram and Director of the Central Research Institute (Yoga) by adopting the following methods:—
(i) non-maintenance of full particulars and accounts of costly scientific instruments, apparatus, and equipments said to have been purchased from time to time and declaring the assets under arbitrary classification at a value not verifiable by the Auditors;
(ii) charging depreciation on assets at undisclosed rates and not enabling the Auditors to verify the correctness of the depreciation charged on any item;
(iii) not carrying out physical verification of the assets in any year to ensure that the assets were physically present and were approximately of the declared value; and
(iv) creation of buildings and assets of doubtful value by fictitious transfers. Even in relation to the grants given by the Ministry of Education and Social Welfare to the Yogashram, there have been adverse audit comments. Further, the land given to the Vishwayatan Yogashram near New Delhi G.P.O., New Delhi, by the Ministry of Works and Housing has not been put to proper use. In these circumstances, it has been considered necessary both in the public interest as well as to secure proper management that the management of the Vishwayatan Yogashram as well as the management of the Central Research Institute (Yoga) be taken over by the Central; Government initially for a period of two years with powers to extend the period up to an aggregate period of five years. As Parliament was not in session, it was considered expedient in the public interest to promulgate an Ordinance viz. "The Yoga Undertakings (Taking Over of Management)Ordinance 1977—No. 8 of 1977" for taking over of the management of the Vishwayatan Yogashram and its Centre at Katra Vaishnodevi and Central Research institute (Yoga) and appointment of an Administrator thereof. The Government of India are now taking steps to accelerate the research programme in the yoga system in the abovementioned Institutes on sound footings and to provide efficient medical aid to the public in the yoga system. The Bill is intended to achieve these objectives and to replace the Ordinance. —Gaz of Ind., 22- 6-1977, Pt. II, S. 2, Ext., p. 306.
An Act to provide for the taking over of the management of the undertakings of the two Yoga Societies for a limited period in the public interest and in order to secure the proper management thereof and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Twenty-eighth Year of the Republic of India as follows:—
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called THEYOGA UNDERTAKINGS (TAKING OVER OF MANAGEMENT) ACT, 1977-
(2) It shall be deemed to have come into force on the 24th day of May 1977
SECTION 02: DEFINITIONS
In this Act, unless the context otherwise requires,—
(a) "Administrator" means the person or body of persons appointed as the Administrator under section 4-;
(b) "appointed day" means the 24th day of May, 1977;
(c) "prescribed" means prescribed by rules made under this Act;
(d) "Societies Registration Act" means the Societies Registration Act, 1860-as in force in the Union territory of Delhi;
(e) "two Yoga Societies" means the— (i) Vishwayatan Yogashram, a society registered under the Societies Registration Act and having its registered office at B-35, Defence Colony, New Delhi, and (ii) Central Research Institute for Yoga, a society registered under the Societies Registration Act,-and having its registered office at Yogashram, Ashok Road, New Delhi, and the expression "Yoga Society" shall be construed as referring to one of the two Yoga Societies;
SECTION 03: MANAGEMENT OF THE UNDERTAKINGS OF THE TWO YOGA SOCIETIES
(1) On and from the appointed day, and for a period of two years thereafter, the management of the undertakings of the two Yoga Societies shall vest in the Central Government: Provided that if the Central Government is of opinion that in order to secure the proper management of the undertakings of either, or both of the Yoga Societies, it is expedient that such management should continue to vest in the Central Government after the expiry of the said period of two years, it may, from time to time, issue directions for the continuance of such management for such period, not exceeding one year at a time, as it may think fit; so, however, that the total period for which such management shall continue to vest in the Central Government shall not, in any case, exceed five years.
(2) The undertakings of each of the two Yoga Societies shall be deemed to include all assets, rights, lease-holds, powers, authorities and privileges and all property, movable and immovable, including lands, buildings, works, workshops, projects, stores, instruments, machinery, aircraft, automobiles and other vehicles, cash balances, reserve funds, investments and book debts and all other rights and interests arising out of such property as were immediately before the appointed day in the ownership, possession, power or control of each of the two Yoga Societies, whether within or without India, and all books of account, registers, maps, plans and all other documents of whatever nature relating thereto.
(3) Any contract, whether express or implied, or other arrangement, in so far as it relates to the management of the business and affairs of the undertakings of either, or both, of the Yoga Societies, and in force immediately before the appointed day, shall be deemed to have terminated on the appointed day.
(4) All persons in charge of the management of either of the two Yoga Societies, including persons holding offices as directors, managers, members of the Governing Body or Board of Trustees or any other managerial personnel of either, or both, of the Yoga Societies immediately before the appointed day shall be deemed to have vacated their offices as such on the appointed day
SECTION 04: ADMINISTRATOR OF THE TWO YOGA SOCIETIES
(1) The Central Government shall, as from the appointed day, appoint a person or a body of persons as the Administrator of the undertakings of the two Yoga Societies for the purpose of taking over the management thereof and the Administrator shall carry on the management of the undertakings of the two Yoga Societies for and on behalf of the Central Government.
(2) The Central Government may issue such directions (including directions as to initiating, defending or continuing any legal proceedings before any court, tribunal or other authority) to the Administrator as to his powers and duties as that Government may deem desirable and the Administrator may apply to the Central Government at any time for instructions as to the manner in which he shall conduct the management of the undertakings of the two Yoga Societies or in relation to any matter arising in the course of such management.
(3) Subject to the other provisions of this Act and the rules made there under and to the control of the Central Government, the Administrator shall be entitled, notwithstanding anything contained in the Societies Registration Act or in any other law for the time being in force, to exercise, in relation to the undertakings of the two Yoga Societies the powers of the Governing Body, or, as the case may be, the Board of Trustees, of the respective Yoga Society, including, the powers to dispose of any property or assets of such society, whether such powers are derived under any law for the time being in force or from the memorandum, and rules and regulations of the concerned Yoga Society or from any other source.
(4) Every person having possession, custody or control of any property forming part of any undertaking of either of the two Yoga Societies shall deliver forthwith such property to the Administrator or to any officer or other employee of the Central Government, as may be authorised by the Central Government in this behalf.
(5) Any person who, on the appointed day, has in his possession or under his control any books, papers or other documents relating to any undertaking of either of the two Yoga Societies, including the minutes books containing the resolutions of the persons in charge of the management of the concerned Yoga Society before the appointed day, the current cheque books relating to the undertakings of the concerned Yoga Society, any letters, memoranda, notes or other communications between him and either of the two Yoga Societies shall, notwithstanding anything contained in any other law for the time being in force, be liable to account for the books, papers and other documents (including such minutes books, cheque books, letters, memoranda, notes or other communications) to the Administrator or to any such person (being an officer or other employee of the Central Government) as may be authorised by the Central Government in this behalf.
(6) Every person in charge of the management of the undertakings of either of the two Yoga Societies immediately before the appointed day shall, within ten days from that day or within such further period as the Central Government may allow in this behalf, furnish to the Administrator a complete inventory of all the properties and assets (including particulars of book debts and investments and belongings) forming part of the undertakings of the concerned Yoga Society immediately before the appointed day of all the liabilities and obligations of the concerned Yoga Society, in relation to its undertakings, subsisting immediately before that day, and also of all agreements entered into by either, or both, of the Yoga Societies in relation to its or their undertakings and in force immediately before that day.
(7) The Administrator shall receive from the funds of the two Yoga Societies such remuneration as the Central Government may fix.
SECTION 05: NO RIGHT TO COMPENSATION FOR PREMATURE TERMINATION OF A CONTRACT
Notwithstanding anything contained in any law for the time being in force, no person in respect of whom any contract of management or other arrangement is terminated by reason of the provisions contained in sub-section (3) of section 3-or who ceases to hold any office by reason of the provisions contained in sub-section (4) of that section, shall be entitled to claim any compensation for the premature termination of the contract of management or other arrangement or for the loss of his office.
SECTION 06: RELINQUISHMENT OF MANAGEMENT OF THE TWO YOGA SOCIETIES
(1) Notwithstanding anything contained in sub-section (1) of section 3-, if at any time before the expiry of the period referred to in that sub-section, it appears to the Central Government that the purposes of the vesting of the management of the undertakings of either, or both, of the Yoga Societies in that Government have been fulfilled or that for any other reason it is not necessary that the management of the undertakings of either, or both, of the Yoga Societies should remain vested in that Government, it may, by order published in the Official Gazette, relinquish the management of the undertakings of either, or both, of the Yoga Societies with effect from such dates as may be specified in the order.
(2) On and from the date specified under subjection (1) the management of the undertakings of the concerned Yoga Society shall vest in the Governing Body (by whatever name called) of the concerned Yoga Society and such management shall be carried on in accordance with the provisions of the Societies Registration Act, so however, that
the steps, if any, in relation to the management of the undertakings of the concerned Yoga Society may be taken after the publication of the order under sub-section (1).
SECTION 07: APPLICATION OF ACT 21 OF 1860
—
(1) Notwithstanding anything contained in the Societies Registration Act or in the memorandum and rules and regulations of either of the two Yoga Societies, but subject to the provisions of sub-section
(2) of section 6-, so long as the management of the undertakings of the two Yoga Societies remains vested in the Central Government,—
(a) it shall not be lawful for the members of either of the two Yoga Societies Or any other person to nominate or appoint any person to be a member of the Governing Body (by whatever name called) of either of the two Yoga Societies;
(b) no resolution passed at any meeting of the members either of the two Yoga Societies or at any meeting of the Governing Body (by whatever name called) of either of the two Yoga Societies, on or after the appointed . day, shall be given effect to unless approved by the Central Government;
(c) no proceeding for the dissolution of either of the two Yoga Societies or for their merger with any other society or for the appointment of a Receiver in respect of any undertaking thereof shall lie in any court except with the consent of the Central Government.
(2) Subject to the provisions contained in sub-section (1) and subject to such other exceptions, restrictions and limitations, if any, as may be prescribed, the Societies Registration Act shall continue to apply to the concerned Yoga Society in the same manner as it applied thereto before the appointed day.
SECTION 08: PENALTIES
Any person who,—
(a) having in his possession or custody or under his control any property forming part of any undertaking of either of the two Yoga Societies, wrongfully withholds such property from the Administrator or any person authorised under this Act, or
(b) wrongfully obtains possession of any such property, or
(c) wilfully retains, or fails to deliver, any property forming part of any of the undertakings of either of the two Yoga Societies or removes or destroys it, or
(d) wilfully withholds or fails to account for any books, papers or other documents which may be in his possession or custody or under his control to the Administrator or any person authorised under this Act, or
(e) fails, without any reasonable cause, to furnish information or particulars as provided in sub-section (6) of section 4-, shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or with both.
SECTION 09: OFFENCES BY COMPANIES
(1) Where an offence under this Act has been committed by 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 if ,he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act 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 be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
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