5. Management.—(1) The general superintendence, direction and management of the affairs and
business of the National Housing Bank shall vest in the Board of Directors, which shall exercise all
powers and do all acts and things, which may be exercised or done by the National Housing Bank.
(2) Subject to the provisions of this Act, the Board, in discharging its functions, shall act on business
principles with due regard to public interest.
(3) Subject to the provisions of sub-section (1) and save as otherwise provided in the regulations
made under this Act,—
1. Subs. by Act 13 of 2018, s. 163, for “Bombay or at such other place as the Reserve Bank” (w.e.f. 1-6-2018).
2. Subs. by s. 163, ibid., for “the Reserve Bank” (w.e.f. 1-6-2018).
3. Subs. by Act 15 of 2000, s. 3, for section 4 (w.e.f. 12-6-2000).
4. The Proviso subs. by Act 13 of 2018, s. 164 (w.e.f. 1-6-2018).
5. The words “the Reserve Bank,” omitted by s. 164, ibid. (w.e.f. 1-6-2018).
6. The Proviso ins. by s. 164, ibid. (w.e.f. 1-6-2018).
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1
[(a) the Chairman, if he is a whole-time director or if he is holding offices both as the Chairman
and the Managing Director, or
(b) the Managing Director, if the Chairman is not if he is whole-time director, or if the Chairman
being a whole-time director, is absent,]
shall also have powers of general superintendence, direction and management of the affairs and business
of the National Housing Bank and may also exercise all powers and do all acts and things which may be
exercised or done by the National Housing Bank and shall act on business principles with due regard to
public interest.
(4) The Managing Director shall, in the discharge of his powers and functions, follow such directions
as the Chairman may give.
(5) In the discharge of its functions under this Act, the National Housing Bank shall be guided by
such directions in matters of policy involving public interest as the Central Government 2*** may give in
writing.
6. Board of Directors.—(1) The Board of Directors of the National Housing Bank shall consist of
the following, namely:—
(a) a Chairman and a Managing Director:
Provided that the same person may be appointed as Chairman and as Managing Director;
(b) 3
[two directors] from amongst the experts in the field of housing, architecture, engineering,
sociology, finance, law, management and corporate planning or in any other field, special knowledge
of which is considered useful to the National Housing Bank;
4
[(c) two directors, who shall be persons with experience in the working of institutions involved
in providing funds for housing or engaged in housing development or have experience in the working
of financial institutions or scheduled banks;
(ca) two directors elected in such manner as may be prescribed by shareholders other than 5***
the Central Government and other institutions owned or controlled by the Central Government;]
(d) 6
[one director] from out of the directors of the Reserve Bank;
(e) three directors from amongst the officials of the Central Government;
(f) two directors from amongst the officials of the State Government.
(2) The Chairman, the Managing Director and other directors 7
[excluding the directors referred to in
clauses (ca) and (d)], shall be appointed by the Central Government 8
[the director] referred to in
clause (d) shall be nominated by the Reserve Bank.
7. Term of office of Chairman, Managing Director and other directors, service conditions,
etc.—(1) The Chairman and the Managing Director shall hold office for such term, not exceeding five
years and shall receive such salary and allowances and be governed by such terms and conditions of
service as the Central Government may 9*** specify and shall be eligible for re-appointment:
Provided that the Chairman or, as the case may be, the Managing Director shall, notwithstanding the
expiration of his term, continue to hold office until his successor enters upon his office.
1. Subs. by Act 15 of 2000, s. 4, for clauses (a) and (b) (w.e.f. 12-6-2000).
2. The words “, in consultation with the Reserve Bank, or the Reserve Bank,” omitted by Act 13 of 2018, s. 165
(w.e.f. 1-6-2018).
3. Subs. by Act 15 of 2000, s. 5, for “three directors” (w.e.f 12-6-2000).
4. Subs. by s. 5, ibid., for clause (c) (w.e.f. 12-6-2000).
5. The words “the Reserve Bank,” omitted by Act 13 of 2018, s. 166 (w.e.f. 1-6-2018).
6. Subs. by s. 166, ibid., for “two directors” (w.e.f. 1-6-2018).
7. Subs. by Act 15 of 2000, s. 5, for “excluding the directors referred to in clause (d)” (w.e.f. 12-6-2000).
8. Subs. by Act 13 of 2018, s. 166, for “in consultation with the Reserve Bank and directors” (w.e.f. 1-6-2018).
9. The words “, in consultation with the Reserve Bank,” omitted by s. 167, ibid. (w.e.f. 1-6-2018).
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(2) The directors referred to in 1
[clauses (b), (c) and (ca)] of sub-section (1) of section 6 shall hold
office for a term of three years:
2* * * * *
(3) The Central Government may 3*** remove the Chairman or the Managing Director, or any other
director referred to in sub-section (2), at any time before the expiry of his term of office after giving him a
reasonable opportunity of showing case against the proposed removal.
(4) Notwithstanding anything contained in sub-sections (1) and (3), the Central Government 3***shall
have the right to terminate the term of office of the Chairman or, as the case may be, the Managing
Director, at any time before the expiry of the term specified under sub-section (1), by giving him notice of
not less than three months in writing or three months’ salary and allowances in lieu thereof and the
Chairman or the Managing Director, as the case may be, shall also have the right to relinquish his office
at any time before the expiry of the term specified under sub-section (1), by giving to the Central
Government notice of not less than three months in writing or three months’ salary and allowances in lieu
thereof.
(5) The directors shall be paid such fees and allowances as may be prescribed for attending the
meetings of the Board or of any of its committees and for attending to any other work of the National
Housing Bank:
Provided that no such fee shall be payable to any director, who is an official of the Government or a
director of the Reserve Bank.
8. Disqualifications.—No person shall be a director of the Board, if he—
(a) is, or becomes of unsound mind and has been so declared by a competent court; or
(b) is or has been convicted of any offence which, in the opinion of the Central Government,
involves moral turpitude; or
(c) is, or at any time has been, adjudicated as insolvent or has suspended payment of his debts or
has compounded with his creditors; or
(d) has, for any reason, been removed or dismissed from the service of—
(i) the Government, or
(ii) the Reserve Bank, the State Bank or any other bank, or
(iii) any public financial institution, or state financial corporation, or
(iv) any other corporation owned or controlled by the Government.
9. Vacation and resignation of office by directors.—(1) If a director—
(a) becomes subject to any of the disqualifications mentioned in section 8; or
(b) is absent without leave of the Board for three or more consecutive meetings thereof,
his seat shall thereupon become vacant.
(2) Any director may resign his office by giving notice thereof in writing to the authority that
appointed or, as the case may be, nominated him and on his resignation being accepted by such authority
or if his resignation is not sooner accepted, on the expiry of three months from the receipt thereof by such
appointing authority, he shall be deemed to have vacated his office.
10. Casual vacancy in the office of Chairman or Managing Director.—If the Chairman, or as the
case may be, the Managing Director, is by infirmity or otherwise rendered 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.
1. Subs. by Act 15 of 2000, s. 6, for “clauses (b) and (c)” (w.e.f. 12-6-2000).
2. The proviso omitted by Act 45 of 2006, s. 19 (w.e.f. 16-10-2006).
3. The words “, in consultation with the Reserve Bank,” omitted by Act 13 of 2018, s. 167 (w.e.f. 1-6-2018).
8
11. Meetings of Board.—(1) The Board shall meet at such times and places and shall observe such
rules of procedure in regard to the transaction of business at its meetings, as may be prescribed.
(2) The Chairman, or, if for any reason he is unable to attend a meeting of the Board, the Managing
Director, or, in the event of both the Chairman and the Managing Director being unable to attend a
meeting, any other director nominated by the Chairman in this behalf and in the absence of such
nomination, any director elected by the directors present from among themselves at the meeting, shall
preside at the meeting.
(3) All questions which come up before any meeting of the Board shall be decided by a majority of
votes of the directors present and voting, and in the event of an equality of votes, the Chairman, or, in his
absence, the person presiding, shall have a second or casting vote.
12. Executive Committee and other committees.—(1) The Board may constitute an Executive
Committee consisting of such number of directors as may be prescribed.
(2) The Executive Committee shall discharge such functions as may be prescribed, or, as may be
delegated to it, by the Board.
(3) The Board may constitute such other committees, whether consisting wholly of directors or
wholly of other persons or partly of directors and partly of other persons as it thinks fit for such purposes,
as it may decide and any committee so constituted shall discharge such functions as may be delegated to it
by the Board.
(4) The Executive Committee or any other committees constituted under this section shall meet at
such times and places and shall observe such rules of procedure in regard to transaction of business at its
meetings, as may be prescribed.
13. Director of Board or member of committee thereof not to participate in meetings in certain
cases.—Any director of the Board or any member of a committee, who has any direct or indirect
pecuniary interest in any matter coming up for consideration at a meeting of the Board or a committee
thereof, shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the
nature of his interest at such meeting and the disclosure shall be recorded in the minutes of the Board, or
the committee, as the case may be, and the director or member shall not take any part in any deliberation
or decision of the Board or the committee with respect to that matter.