The Auroville Foundation Act, 1988

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The Auroville Foundation Act, 1988 

(ACT NO 54 OF 1988) 

[As on the 21st May, 2025] 

  



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LIST OF ABBREVIATIONS USED 

 

G.S.R.                . . . . .             for              General Statutory Rules. 

S.O.              . . . .            .           ,,        Statutory Order. 

Notifn.  . . . . .  ,,        Notification. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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THE AUROVILLE FOUNDATION ACT, 1988 
_________ 

ARRANGEMENT OF SECTIONS 

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CHAPTER I 

PRELIMINARY 

SECTIONS 

1. Short title. 

2. Definitions. 

CHAPTER II 

ACQUISITION AND TRANSFER OF UNDERTAKINGS OF AUROVILLE 

3. Transfer to, and vesting in, the Central Government of certain undertakings of the Society, trusts 

and bodies. 

4. General effect of vesting. 

5. Central Government or Foundation to be liable for certain prior liabilities. 

6. Power of Central Government to direct vesting of the undertakings in the Foundation. 

7. Management, etc., of the undertakings. 

8. Duties of persons in charge of management by undertakings to deliver all assets. 

9. Certain powers of the Central Government or the Foundation. 

CHAPTER III 

THE AUROVILLE FOUNDATION 
 

10. Establishment and incorporation of the Foundation. 

11. Governing Board. 

12. Term of office of members. 

13. Salary and allowances and other conditions of service of Chairman. 

14. Meetings of the Governing Board. 

15. Secretary and other officers of the Foundation. 

16. Committees of the Governing Board. 

17. Powers and functions of the Governing Board. 

18. Residents’ Assembly. 

19. Functions of Residents’ Assembly. 

20. Working Committee or Residents’ Assembly. 

21. Advisory Council. 

22. Dissolution of the Foundation. 

23. Grant by Central Government to the Foundation. 

CHAPTER IV 

MISCELLANEOUS 

24. Duty to furnish returns, etc. 

25. Borrowing powers of the Governing Board. 

26. Accounts and audit. 

27. Act to have overriding effect. 

28. Contracts to cease to have effect unless ratified by the foundation. 

29. Penalties. 

30. Protection of action taken in good faith. 



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SECTIONS 

31. Power to make rules. 

32. Power to make regulations. 

33. Rules and regulations to be laid before Parliament. 

34. Power to remove difficulties. 

THE SCHEDULE 

  



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THE AUROVILLE FOUNDATION ACT, 1988 

ACT NO. 54 OF 1988 

[29th September, 1988.] 

An Act to provide for the acquisition and transfer of the undertakings of Auroville and               

to vest such undertakings in a foundation established for the purpose with a view to making 

long-term arrangements for the better management and further development of Auroville in 

accordance with its original charter and for matters connected therewith or incidental thereto. 

WHEREAS Auroville was founded by the ‘Mother’ on the 28th day of February, 1968 as an 

international cultural township; 

AND WHEREAS in view of the serious difficulties which had arisen with regard to the management of 

Auroville, the management thereof had been vested in the Central Government for a limited period by the 

Auroville (Emergency Provisions) Act, 1980 (59 of 1980); 

AND WHEREAS under the management of the Central Government and under the overall guidance of 

the International Advisory Council set up under the aforesaid Act, Auroville had been able to develop 

during the last eight years along several important lines and the residents of Auroville have also carried 

on activities for the development of Auroville which need further encouragement and consolidation; 

AND WHEREAS Auroville was developed as a cultural township with the aid of funds received from 

different organisations in and outside India as also from substantial grants received from the Central and 

State Governments, and the United Nations Educational Scientific and Cultural Organisation also had, 

from time to time, reflected in its resolutions that the project on Auroville is contributing to international 

understanding and promotion of peace; 

AND WHEREAS for the purpose of encouraging, continuing and consolidating the aforesaid activities 

of Auroville, it is necessary in the public interest to acquire the undertakings of Auroville and to vest 

them in a body corporate established for the purpose; 

BE it enacted by Parliament in the Thirty-ninth Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1. Short title.—This Act may be called the Auroville Foundation Act, 1988. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “appointed day” means the date of commencement of this Act; 

(b) “Auroville” means so much of the undertakings as form part of, or are relatable to, the cultural 

township which is known as Auroville and the charter of which was proclaimed by the ‘Mother’ on 

the 28th day of February, 1968; 

(c) “Council” means the Auroville International Advisory Council constituted under                  

sub-section (1) of section 21; 

(d) “Custodian” means the person who is appointed as the Custodian under sub-section (2) of 

section 7 in respect of the undertakings; 

(e) “Foundation” means the Auroville Foundation established under sub-section (1) of section 10; 

(f) “Governing Board” means the Governing Board of the Foundation constituted under           

sub-section (1) of section 11; 

(g) “notification” means a notification published in the Official Gazette; 

(h) “prescribed” means prescribed by rules made under this Act; 

(i) “Residents Assembly” means the Residents’ Assembly of the Foundation;  



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(j) “Society” means Sri Aurobindo Society, being a Society as defined in the West Bengal 

Societies Registration Act, 1961 (West Bengal Act XXVI of 1961), and having its registered office at 

Calcutta in the State of West Bengal; 

(k) “specified date” means such date as the Central Government may, for the purpose of section 9, 

by notification, specify; 

(l) “trust” or “body” means a trust or body specified in the Schedule; 

(m) “undertakings” means the undertakings of the Society, trust or body which had vested in the 

Central Government under section 3. 

CHAPTER II 

ACQUISITION AND TRANSFER OF UNDERTAKINGS OF AUROVILLE 

3. Transfer to, and vesting in, the Central Government of certain undertakings of the Society, 

trusts and bodies.—On the appointed day, so much of the undertakings of the Society, trust and body as 

form part of, or are relatable to Auroville, and the right, title and interest of the Society, trust and body, in 

relation to such undertakings, shall, by virtue of this Act, stand transferred to, and vest in, the Central 

Government. 

4. General effect of vesting.—(1) The undertakings vested under section 3 shall be deemed to 

include all the assets, rights, leaseholds, powers, authorities and privileges, and all property (movable and 

immovable), including lands, buildings, works, workshops, projects, stores, instruments, machinery, 

automobiles and other vehicles, cash balances, funds, including reserve funds, investments and book 

debts of the Society, trust or body as form part of, or are relatable to, Auroville and all other rights and 

interests arising out of such properties as were immediately before the appointed day in the ownership, 

possession, power or control of the Society, trust or body, whether within or without India, and all    

books of account, registers, maps, plans and all other documents of whatever nature relating thereto. 

(2) All properties and assets as aforesaid which have vested in the Central Government under   

section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, 

charge, lien and all other incumbrances affecting them or of any attachment, injunction, decree or order of 

any court or other authority restricting the use of such properties or assets in any manner or appointing 

any receiver in respect of the whole or any part of such properties or assets shall be deemed to have been 

withdrawn. 

(3) Any licence or other instrument granted to the Society, trust or body in relation to any undertaking 

which has vested in the Central Government under section 3 at any time before the appointed day and in 

force immediately before the appointed day, shall continue to be in force on and after such day in 

accordance with its tenor in relation to and for the purposes of such undertaking or where the undertaking 

is directed under section 6 to vest in the Foundation, the Foundation shall be deemed to be substituted in 

such licence or other instrument as if such licence or other instrument had been granted to the Foundation 

and the Foundation shall hold it for the remainder of the period for which the Society, trust or body would 

have held it under the terms thereof. 

(4) If, on the appointed day, any suit, appeal or other proceeding, of whatever nature, in relation to 

any property or asset which has vested in the Central Government under section 3, instituted or preferred 

by or against the Society, trust or body is pending, the same shall not abate, be discontinued or be, in any 

way, prejudicially affected by reason of the transfer of the undertakings of the Society, trust or body or of 

anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted or 

enforced by or against the Central Government, or where the undertakings of the Society, trust or body 

are directed under section 6 to vest in the Foundation, by or against the Foundation. 

5. Central Government or Foundation to be liable for certain prior liabilities.—Every liability in 

relation to any undertaking in respect of any period prior to the appointed day shall be enforceable against 

the Central Government and not against the Society, trust or body, or where the said undertakings are 

directed, under section 6, to vest in the Foundation, against the Foundation.  



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6. Power of Central Government to direct vesting of the undertakings in the          

Foundation.—(1) Notwithstanding anything contained in sections 3 and 4, the Central Government shall, 

as soon as may be after the appointed day, direct, by notification, that the undertakings and the right, title 

and interest of the Society, trust or body in relation to such undertakings which had vested in the Central 

Government under section 3, shall, instead of continuing to vest in the Central Government, vest in the 

Foundation either on the date of publication of the notification or on such earlier or later date as may be 

specified in the notification. 

(2) Where the right, title and interest of the Society, trust or body in relation to the undertakings vest, 

under sub-section (1), in the Foundation, the Foundation shall, on and from the date of such vesting, be 

deemed to have become the owner in relation to such undertakings and the rights and liabilities of the 

Central Government in relation to such undertakings shall, on and from the date of such vesting, be 

deemed to have become, the rights and liabilities, respectively, of the Foundation. 

7. Management, etc., of the undertakings.—(1) The general superintendence, direction, control and 

management of the affairs of the undertakings, the right, title and interest in relation to which have vested 

in the Central Government under section 3, shall,— 

(a) where a direction has been made by the Central Government under sub-section (1) of    

section 6, vest in the Foundation; or 

(b) where no such direction has been made by the Central Government, vest in a Custodian 

appointed by the Central Government under sub-section (2), 

and, thereupon, the Foundation, or the Custodian so appointed, as the case may be, shall be entitled to 

exercise all such powers and do all such things as the Society, trust or body, as the case may be, is 

authorised to exercise and do in relation to its undertakings. 

(2) The Central Government may appoint any person as the Custodian of the undertakings in relation 

to which no direction has been made by it under sub-section (1) of section 6. 

(3) The Custodian so appointed shall receive such remuneration as the Central Government may fix 

and shall hold office during the pleasure of the Central Government. 

8. Duties of persons in charge of management by undertakings to deliver all assets.—(1) On the 

vesting of the management of the undertakings in the Foundation or on the appointment of a Custodian 

under section 7, all persons in charge of the management of the undertakings immediately before such 

vesting or appointment shall be bound to deliver to the Foundation or Custodian, as the case may be, all 

assets, books of account, registers and other documents in their custody relating to the undertakings. 

(2) The Central Government may issue such directions as it may deem desirable in the circumstances 

of the case to the Custodian as to the powers and duties of the Custodian and such Custodian may also, if 

it is considered necessary so to do, apply to the Central Government at any time for instructions as to the 

manner in which the management of the undertakings shall be conducted or in relation to any other matter 

arising in the course of such management. 

(3) Any person, who on the appointed day, has in his possession or under his control, any books, 

documents or other papers relating to the undertakings shall be liable to account for the said books, 

documents or other papers to the Central Government or the Foundation, as the case may be, and shall 

deliver them up to the Central Government or the Foundation or to such person or body of persons as the 

Central Government or the Foundation may specify in this behalf. 

(4) The Central Government or the Foundation may take or cause to be taken, all necessary steps for 

securing possession of all undertakings which have vested in the Central Government or the Foundation 

under this Act. 

(5) The Society, trust or body shall, within such period as the Central Government may allow in this 

behalf, furnish to that Government a complete inventory of all its properties and assets, as on the 

appointed day pertaining to the undertakings and, for this purpose, the Central Government or the 

Foundation shall afford to the Society, trust or body all reasonable facilities.  



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9. Certain powers of the Central Government or the Foundation.—The Central Government or 

the Foundation shall be entitled to receive up to the specified date, to the exclusion of all other persons, 

any money due to the Society, trust or body in relation to its undertakings which have vested in the 

Central Government or the Foundation, as the case may be, and realised after the appointed day, 

notwithstanding that the realisation pertains to a period prior to the appointed day. 

CHAPTER III 

THE AUROVILLE FOUNDATION 

10. Establishment and incorporation of the Foundation.—(1) With effect from such date as the 

Central Government may, by notification, appoint in this behalf, there shall be established for the purpose 

of this Act, a Foundation, to be called the Auroville Foundation. 

(2) The Foundation shall be a body corporate 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 Foundation shall consist of the following authorities, namely:— 

(a) the Governing Board; 

(b) the Residents’ Assembly; 

(c) the Auroville International Advisory Council 

11. Governing Board.—(1) The Governing Board shall consist of the following members, 

namely:— 

(i) not more than seven members to be nominated by the Central Government from amongst 

persons, who have— 

(a) rendered valuable service to Auroville; 

(b) dedicated themselves to the ideals of life-long education, synthesis of material and 

spiritual researches or human unity; 

(c) contributed significantly in activities that are being persued or are envisaged to be 

promoted in Auroville, including activities relating to environment, afforestation, arts and crafts, 

industry, agriculture, humanities, sciences and integral yoga; 

(ii) two representatives of the Central Government to be nominated by it. 

(2) The Central Government shall nominate a Chairman of the Governing Board from amongst the 

members nominated by it under clause (i) of sub-section (1). 

(3) The general superintendence, direction and management of the affairs of the Foundation shall vest 

in the Governing Board which may exercise all the powers and discharge all the functions which may be 

exercised or discharged by the Foundation. 

(4) The Governing Board may associate with itself in such manner and for such purposes as may be 

prescribed, any persons whose assistance or advice it may desire in complying with any of the provisions 

of this Act and a person so associated shall have the right to take part in the discussions of the Governing 

Board relevant to the purposes for which he has been associated, but shall not have the right to vote. 

(5) No act or proceeding of the Governing Board or any committee appointed by it under section 16 

shall be invalidated merely by reason of,— 

(a) any vacancy in, or any defect in the constitution of, the Governing Board or such     

committee; or 

(b) any defect in the nomination of a person acting as a member of the Governing Board or such 

committee; or 

(c) any irregularity in the procedure of the Governing Board or such committee not affecting the 

merits of the case.  



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12. Term of office of members.—(1) Subject to the provisions of this section, the term of office of 

the members of the Governing Board including the Chairman shall be four years from the date of their 

nomination. 

(2) An outgoing member of the Governing Board shall be eligible for re-nomination. 

(3) The term of office of a member nominated to fill a casual vacancy in the Governing Board shall 

continue for the remainder of the term of the member in whose place he is nominated. 

(4) A member may resign his office by writing under his hand addressed to the Central Government 

but he shall continue in office until his resignation is accepted by that Government. 

13. Salary and allowances and other conditions of service of Chairman.—The Chairman of the 

Governing Board shall be entitled to such salary and allowances and such conditions of service in respect 

of leave, pension, provident fund and other matters as may, from time to time, be fixed by the Central 

Government. 

14. Meetings of the Governing Board.—(1) The Governing Board shall meet at least once a year at 

Auroville at such time as may be fixed by the Chairman of the Governing Board. 

(2) All the decisions at any meeting of the Governing Board shall be taken by a majority of the 

members present and voting: 

Provided that in the case of equality of votes, the Chairman of the Governing Board shall have a 

casting vote. 

15. Secretary and other officers of the Foundation.—(1) The Central Government shall appoint a 

Secretary to the Foundation to exercise such powers and perform such duties under the Chairman of the 

Governing Board as may be prescribed or as may be delegated to him by the Chairman. 

(2) The Secretary shall be entitled to such salary and allowances and such conditions of service in 

respect of leave, pension, provident fund and other matters as may, from time to time, be fixed by the 

Central Government. 

(3) Subject to such control, restrictions and conditions as may be prescribed, the Governing Board 

may appoint such other officers and employees as may be necessary for the efficient performance of its 

functions. 

(4) The Chairman, Secretary and other officers and employees of the Foundation shall not undertake 

any work unconnected with their duties under this Act except with the permission of the Central 

Government. 

16. Committees of the Governing Board.—(1) The Governing Board may appoint such committees 

as may be necessary for the efficient discharge of its duties and performance of its functions under this 

Act. 

(2) The Governing Board shall have the power to co-opt as members of any committee appointed 

under sub-section (1), such number of persons who are not members of the Governing Board as it may 

think fit, and the persons so co-opted shall have the right to attend the meetings of the committee, and 

take part in the proceedings of the committee, but shall not have the right to vote. 

17. Powers and functions of the Governing Board.—The powers and functions of the Governing 

Board shall be— 

(a) to promote the ideals of Auroville and to coordinate activities and services of Auroville in 

consultation with the Residents’ Assembly for the purposes of cohesion and integration of Auroville; 

(b) to review the basic policies and the programmes of Auroville and give necessary directions 

for the future development of Auroville; 

(c) to accord approval to the programmes of Auroville drawn up by the Residents’ Assembly; 

(d) to monitor and review the activities of Auroville and to secure proper management of the 

properties vested in the Foundation under section 6 and other properties relatable to Auroville; 



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(e) to prepare a master-plan of Auroville in consultation with the Residents’ Assembly and to 

ensure development of Auroville as so planned; 

(f) to authorise and coordinate fund-raising for Auroville and to secure proper arrangements for 

receipts and disbursement of funds for Auroville. 

18. Residents’ Assembly.—(1) The Residents’ Assembly shall consist of all the residents of 

Auroville who are for the time being entered in the register of residents maintained under this section. 

(2) The Secretary to the Governing Board shall maintain the register of residents in such manner as 

may be prescribed and all the persons who are residents of Auroville and who are of the age of eighteen 

years and above are entitled to have their names entered in the register on an application made to the 

Secretary in such form as may be prescribed. 

(3) All the names of residents, which have been included in the register maintained by the 

Administrator appointed under section 5 of the Auroville (Emergency Provisions) Act, 1980 (59 of 1980) 

immediately before the appointed day, shall be deemed to have been included in the register maintained 

under this section. 

19. Functions of Residents’ Assembly.—(1) The Resident’s Assembly shall perform such functions 

as are required by this Act and shall advise the Governing Board in respect of all activities relating to the 

residents of Auroville. 

(2) In particular, and without prejudice to the foregoing powers, the Residents’ Assembly may— 

(a) allow the admission or cause the termination of persons in the register of residents in 

accordance with the regulations made under section 32; 

(b) organise various activities relating to Auroville; 

(c) formulate the master plan of Auroville and make necessary recommendations for the 

recognition of organisations engaged in activities relatable to Auroville for the approval of the 

Governing Board; 

(d) recommend proposals for raising funds for Auroville for the approval of the Governing Board. 

(3) For the purpose of carrying of its functions, the Residents’ Assembly may establish such 

committees as it may consider necessary which shall represent it in relation to the functions to be 

performed by the Governing Board. 

20. Working Committee of Residents’ Assembly.—(1) There shall be a Working Committee of the 

Residents’ Assembly which shall assist the Residents’ Assembly or, as the case may be, the Governing 

Board, in discharging its duties under this Act. 

(2) The Working Committee shall consist of not more than seven members to be chosen by the 

Residents’ Assembly from among themselves. 

(3) The manner of choosing the members of the Working Committee and their term of office shall be 

such as may be decided by the Residents’ Assembly. 

(4) The Working Committee may, with the approval of the Governing Board, create or constitute 

other organisations, trusts, societies or associations relatable to Auroville if the Working Committee is 

satisfied that such organisations, trusts, societies or associations have— 

(a) their headquarters at Auroville; 

(b) declared than in all matters relating to Auroville they shall act in conformity with the 

decisions of the Governing Board and that their main object is to promote the ideals laid down in the 

Charter of Auroville proclaimed by the ‘Mother’ on the 28th day of February, 1968. 

21. Advisory Council.—(1) The Auroville International Advisory Council shall consist of not more 

than five members nominated by the Central Government. 

(2) The Central Government may nominate the members of the Council from amongst persons who in 

its opinion are devoted to the ideals of human unity, peace and progress.  



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(3) The Council may, on its own motion or on a reference made to it by the Governing Board, advise 

the Governing Board on any matter relating to the development and management of Auroville. 

(4) In tendering any advice to the Governing Board, the Council shall endeavour to secure that— 

(a) the ideals for which Auroville has been established are encouraged, and 

(b) the residents of Auroville are allowed freedom to grow and develop activities and institutions 

for the fulfilment of the aspirations and programmes envisaged in the said Charter of Auroville. 

(5) There shall be a Chairman of the Council who shall be elected by the members of the Council 

from among themselves. 

(6) The term of office of, the method of filling casual vacancies among, and the allowances and other 

remuneration, if any, payable to, the members of the Council, shall be such as may be determined by the 

Central Government. 

(7) The Council shall have power to regulate its own procedure. 

22. Dissolution of the Foundation.—(1) The Central Government may, by notification and for 

reasons to be specified therein, direct that the Foundation shall be dissolved from such date and for such 

period as may be specified in the notification: 

Provided that before issuing any such notification, the Central Government shall give a reasonable 

opportunity to the Foundation to make representation against the proposed dissolution and shall consider 

the representation, if any, of the Foundation. 

(2) When the Foundation is dissolved under the provisions of sub-section (1),— 

(a) all members of the Governing Board, notwithstanding that the terms of their office had not 

expired, shall, from the date of dissolution, vacate their offices as such members; 

(b) all powers and duties of the Foundation shall, during the period of dissolution, be exercised 

and performed by such person or persons as the Central Government may appoint in this behalf; 

(c) all properties vested in the Foundation shall, during the period of dissolution, vest in the 

Central Government; and 

(d) as soon as the period of dissolution expires, the Foundation shall be reconstituted in 

accordance with the provisions of this Act. 

23. Grant by Central Government to the Foundation.—For the purpose of enabling the 

Foundation to discharge its functions under this Act, the Central Government may, after due 

appropriation made by Parliament by law in this behalf, pay to the Foundation, in each financial year, 

such sums of money as that Government considers necessary by way of grant, loan or otherwise. 

CHAPTER IV 

MISCELLANEOUS 

24. Duty to furnish returns, etc.—(1) The Governing Board shall furnish to the Central Government 

at such time and in such form and manner as may be prescribed, or as the Central Government may direct, 

such returns and statements and such particulars as the Central Government may, from time to time, 

require. 

(2) Without prejudice to the provisions of sub-section (1), the Governing Board shall, as soon as 

possible after the end of each financial year, submit to the Central Government a report in such form and 

before such date as may be prescribed giving a true and full account of its activities, policy and 

programmes during the previous year. 

(3) A copy of the report received under sub-section (2) shall be laid, as soon as may be, after it is 

received before each House of Parliament.  



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25. Borrowing powers of the Governing Board.—Subject to such rules as may be made in this 

behalf, the Governing Board shall have the power to borrow on the security of the properties of Auroville 

or any other asset for carrying out the purposes of this Act. 

26. Accounts and audit.—(1) The Governing Board shall maintain proper accounts and other 

relevant records and prepare an annual statement of accounts, including the income and expenditure 

account and the balance-sheet in such form as may be prescribed by the Central Government in 

consultation with the Comptroller and Auditor General of India. 

(2) The accounts of the Foundation shall be audited by the Comptroller and Auditor General of India 

at such intervals as may be specified by him and any expenses incurred in connection with such audit 

shall be payable by the Foundation to the Comptroller and Auditor General. 

(3) The Comptroller and Auditor-General of India and any person appointed by him in connection 

with the audit of the accounts of the Foundation shall have the same rights and 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 the officer of the 

Foundation. 

(4) The accounts of the Foundation, as certified by the Comptroller and Auditor General of India or 

any other 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 the same to be laid before each 

House of Parliament. 

27. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding 

anything inconsistent therewith contained in any other law for the time being in force or in any instrument 

having effect by virtue of any law other than this Act, or in any decree or order of any court, tribunal or 

other authority. 

28. Contracts to cease to have effect unless ratified by the foundation.—Every contract entered 

into by the Society, trust or body in relation to its undertakings for any service, sale or supply, and in 

force immediately before the appointed day, shall, on and from the expiry of one hundred and eighty days 

from that day, cease to have effect unless such contract is, before the expiry of the said period, ratified in 

writing by the Central Government or, as the case may be, the Foundation, and in ratifying such contract, 

the Central Government or, as the case may be, the Foundation may make such alterations or 

modifications therein as it may think fit: 

Provided that the Central Government or, as the case may be, the Foundation shall not omit to ratify a 

contract and shall not make any alteration or modification therein,— 

(a) unless it is satisfied that such contract is unduly onerous or has been entered into in bad faith 

or is detrimental to the interests of the Central Government or, as the case may be, the Foundation; 

and 

(b) except after giving the parties to the contract a reasonable opportunity of being heard and 

except after recording in writing its reasons for its refusal to ratify the contract or for making any 

alteration or modification therein. 

29. Penalties.—A person who,— 

(a) having in his possession, custody or control any property forming part of the undertakings of 

the Society, trust or body, wrongfully withholds such property from the Central Government or, as 

the case may be, the Foundation or any person or body of persons authorised by that Government or 

the Foundation; or 

(b) wrongfully obtains possession of, or retains, any property forming part of any undertaking of 

the Society, trust or body or wilfully withholds or fails to furnish to the Central Government or, as the 

case may be, the Foundation or any person or body of persons authorised by that Government or the 

Foundation, any documents relating to such undertakings which may be in his possession, custody or 

control, or fails to deliver to the Central Government or, as the case may be, the Foundation or any 



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person or body of persons authorised by that Government or the Foundation any assets,                 

books of account, registers or other documents in his possession, custody or control relating to the 

undertakings of the Society, trust or body; or 

(c) wrongfully removes or destroys any property forming part of the undertakings of the Society, 

trust or body, 

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. 

30. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall 

lie against the Central Government or any officer of that Government or the Custodian or any officer or 

other person authorised by that Government or the Foundation for anything which is in good faith done or 

intended to be done under this Act. 

31. Power to make rules.—(1) The Central Government may, by notification, make rules for 

carrying out the provisions 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 manner in which and the purpose for which any person may be associated with the 

Governing Board under sub-section (4) of section 11; 

(b) the powers and duties which the Secretary to the Governing Board may perform under       

sub-section (1) of section 15; 

(c) the control, restrictions and conditions subject to which the Governing Board may appoint 

officers and employees under sub-section (3) of section 15; 

(d) the manner in which the register of residents may be maintained under sub-section (2) of 

section 18; 

(e) the time within which and the form and manner in which the Governing Board may furnish 

returns and reports under sub-section (1) of section 24; 

(f) the form and the date before which the Governing Board shall submit reports to the Central 

Government under sub-section (2) of section 24; 

(g) the rules subject to which the Governing Board shall have the power to borrow under     

section 25; 

(h) any other matter which is to be or may be prescribed. 

32. Power to make regulations.—(1) The Governing Board may make regulations, not inconsistent 

with this Act and the rules made thereunder, for enabling it to discharge its functions under this Act. 

(2) Without prejudice to the generality of the foregoing power, such regulations may provide for all 

or any of the following matters, namely:— 

(a) the procedure to be followed at meetings of the Governing Board or at the meetings of the 

committees appointed by it and the number of members which shall form a quorum at such meetings; 

(b) the delegation to the Chairman, other members, Secretary or other officers of the Governing 

Board, of any of the powers, duties of the Governing Board under this Act; 

(c) the travelling and other allowances payable to persons associated under sub-section (4) of 

section 11 or co-opted under sub-section (2) of section 16; 

(d) the pay and allowances and leave and other conditions of service of officers (other than those 

appointed by the Central Government) and other employees of the Foundation; 

(e) the maintenance of the accounts of the Foundation; 

(f) the maintenance of the registers and other records of the Foundation and its various 

committees;  



14 
 

(g) the appointment by the Governing Board of agents to discharge on its behalf any of its 

functions; 

(h) admission or termination of persons in the register of residents. 

(3) No regulation made by the Governing Board shall have effect until it has been approved by the 

Central Government and published in the Official Gazette, and the Central Government, in approving the 

regulation, may make changes therein which appear to it to be necessary. 

33. Rules and regulations to be laid before Parliament.—Every rule or regulation made 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 regulation, or both 

Houses agree that the rule or regulation should not be made, the rule or regulation 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 or regulation. 

34. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 

this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove 

the difficulty: 

Provided that no such order shall be made after the expiry of a period of two years from the appointed 

day. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

  



15 
 

THE SCHEDULE 

[See section 2 (l)] 

TRUSTS AND BODIES 

1. Auroville Trust, Auroville. 

2. Artisane Trust, Auroville. 

3. Auroservice d’Auroville Trust, Pondicherry. 

4. Aurelec Trust, Auroville. 

5. Auromitra, Auroville. 

6. Centre for Scientific Research, Auroville. 

7. Sri Aurobindo International Institute of Educational Research, Auroville. 

8. Altecs Trust, Auroville. 

9. New Engineering Trust, Auroville. 

10. Auro Trust, Pondicherry. 

11. Service Trust, Pondicherry. 

12. Auro Press Trust, Pondicherry. 

13. New Trust, Pondicherry. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



16 
 

 

STATEMENT OF OBJECTS AND REASONS 

The cultural township of Auroville, situated about 10 Kms. north of Pondicherry, was founded on 

28th February, 1968, on the basis of a charter announced by the Mother where people of different 

countries are expected to live together in harmony in one community and are expected to engage 

themselves in cultural, educational, scientific and other pursuits aiming at human unity. 

2. The formation and growth of Auroville was welcomed by the Government of India as a concrete 

effort of creating international under-standing. Resolutions were also sponsored by the Government of 

India in four general conferences of UNESCO, commending Auroville project to those interested in 

UNESCO's ideals. However, soon after the Mother left her body in 1973, unhappy development overtook 

this project and the Central Government was forced to take over temporarily the management of 

Auroville from Sri Aurobindo Society and others under the Auroville (Emergency Provisions) Act, 1980 

(59 of 1980). Initially, the Act was valid for 5 years, but it had to be extended further in 1985 and 1987 as 

the efforts made to arrive at a solution, in consultation with the residents of Auroville and Sri Aurobindo 

Society, to provide for the permanent management of Auroville, had not succeeded. Efforts were 

however, continued and a broad consensus has now emerged that it would be in the interest of further 

development of Auroville to establish a body corporate called the Auroville Foundation. 

3. The properties relatable to Auroville which are currently owned by Sri Aurobindo Society and 

other trusts and bodies founded by the Residents of Auroville will vest in the new body corporate. The 

management of all properties and assets relatable to Auroville is presently with the Administrator of 

Auroville appointed under the Auroville (Emergency Provisions) Act, 1980. These Assets were created 

by Sri Aurobindo Society and other bodies substantially with the aid of donations received from different 

organizations and individuals in and outside India (including the Central and State Governments) for 

purposes and activities of Auroville which under the proposed Legislation will become the responsibility 

of the Foundation. The Government, therefore, proposes to acquire these assets without payment of any 

compensation and vest these in the proposed Auroville Foundation whose primary objective shall be to 

encourage and promote ideals and Mother which are cherished in equal degree by the Sri Aurobindo 

Society and the Residents of Auroville. 

4. As in the existing Auroville Act there shall be an International Advisory Council to advise the 

Central Government and the Governing Board of the Foundation on matters concerning development and 

management of Auroville. The day to day activities will be looked after by the Residents through 

appropriate autonomous arrangements. 

5. The management of the Foundation will vest in a Governing Board, as constituted by the 

Government from time to time. In order to avoid old controversies getting perpetuated in the Governing 

Board, the Government has decided in principle that none of the existing societies or trusts will have a 

right of representation on the Governing Board. All nominations to this body will, therefore, be on 

individual basis. 

6. The Bill incorporates the provisions mentioned above. 

 

       P. SHIV SHANKAR. 

NEW DELHI; 

The 27th August, 1988